China Morning Snapshot – 12 August 2021

Major contracts on Dalian Commodity Exchange settled the morning session in the green, taking the support from the strong energy complex. Traders shrug off the impact of the Delta variant of the coronavirus on the market. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 25,000 tons from the previous trading day to 695,000 tons as of 12 August 2021.

The strong Dalian Commodity Exchange pulls the domestic spot market higher, however, buyers further withdraw to the sideline following the hike, highlighting the fragile demand condition.

In the meantime, sources reported active inquiries for LDPE film cargoes ahead of the agricultural film season. “Supply for LDPE film is tighter than other grades. We expect the demand would remain stable for this cargo, which could pull LLDPE film up, too,” a trader commented.