China Morning Snapshot – 26 February 2021
China Morning Snapshot – 26 February 2021
Both PP and LLDPE contracts remain on the positive side throughout the morning session.
Details on the spot and futures prices are shown in the following table:
|
26 February 2021 |
Prices in CNY |
USD Equivalent |
Changes in CNY |
Changes in USD |
|
Combined and reported by CommoPlast |
||||
|
Dalian Commodity Exchange (Mid-day closing) |
||||
|
PP 2105 |
CNY 9371 |
USD 1286 |
+CNY 74 |
+USD 11 |
|
LLDPE 2105 |
CNY 8940 |
USD 1227 |
+CNY 65 |
+USD 10 |
|
Spot Domestic Prices (EXW China, Cash equivalent) |
||||
|
PPH (East China) |
CNY 9300-9400 |
USD 1276-1290 |
Stable |
Stable |
|
LLDPE (North China) |
CNY 8800-9050 |
USD 1207-1242 |
-CNY 50 |
-USD 8 |
|
**All USD equivalent prices are exclusive of 13% VAT |
||||
Total inventories at Sinopec and CNPC’s warehouses reduced 45,000 tons day-on-day to 820,000 tons as of 26 February 2021.
Local suppliers maintain a firm stance on spot cargoes thanks to the support from the resilient futures trading, however, real demand from manufacturers is still soft. Woven bag converters are having squeezed margins at the current raw material prices and prefer to sustain the production using the on-hand inventory.
Meanwhile, it appears that Chinese sellers continue to focus on the export market, offering even PP block copolymer cargoes.