China Morning Snapshot – 09 August 2021

Major contracts on Dalian Commodity Exchange opened the first trading day in the negative territory but managed to regain some strengths by the end of the morning session. 

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

Sinopec and CNPC’s total PP and PE stocks piled up 50,000 tons through the weekend to 760,000 tons as of 09 August 2021.

Trading sentiment during the early hours on the first trading day of the week was sluggish under heavy pressure from the falling crude oil market and the spread of the Delta variant that trigger strict movement control in China. There have been reports that buyers prefer to buy cargoes with farther delivery schedules while asking for lower price levels. 

“It is difficult to move cargoes this morning, however, we decided to hold the prices to monitor further movement. Buyers might become more willing to make replenishment once the futures market rebound,” a trader said. The source continues to offers export homo-PP at $1200/ton FOB China, stable from last week.