China Morning Snapshot – 28 July 2021

Both PP and LLDPE contracts settled the morning session in the positive territory as the market gradually recovers from the recent flood. However, the rebound seems to lack momentum. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 5,000 tons from the previous day to705,000 tons as of 28 July 2021.

The rebound on Dalian Commodity Exchange encourages buyers to return to make some replenishment, though with caution. Market participants continue to monitor the movement of the In-Fa typhoon as it moves toward the Shandong area, which could potentially push customers here sidelines in the next couple of days.

In the meantime, Chinese suppliers are more active in directing PP and LLDPE cargoes to the export market for better profit margins.