China Morning Snapshot – 21 July 2021

Dalian Commodity Exchange for both PP and PE poses range-bound trend throughout the morning session. 

Details on the spot and futures prices are shown in the following table:

Compared to the previous trading day, total stocks at Sinopec and CNPC’s warehouse digested 15,000 tons to 670,000 tons as of 21 July 2021. (Correction: The total inventories were at 685,000 tons on 20 July 2021. The previous Snapshot reported at 695,000 tons.)

Trading sentiment in the local market holds steady with suppliers are more open to negotiation with serious buyers after rumours that the government would implement measures to ease the coal supply shortage, which could allow coal-based polyolefins plants to increase production output. 

Meanwhile, there are no concrete reports on the impact of the recent flood in Henan province on the market. Sources said that a majority of manufacturers in the affected area are small to medium-scale mask makers.