May 16, 2021 2:24 a.m.

China Morning Snapshot – 09 April 2021

At the time of this report, sentiment in the local ground remains soft, though sellers hope to counterbalance the situation by the lower inventory pressure ahead of the maintenance shutdown season.

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Both PP and LLDPE contracts for May delivery remain in the negative territory throughout the morning session, though the extent of reduction is smaller than the previous session.

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

07 April 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 8860

USD 1199

-CNY 15

-USD 2

LLDPE 2105

CNY 8575

USD 1160

-CNY 85

-USD 13

Spot Domestic Prices (EXW China, Cash equivalent)

PPH (East China)

CNY 8900-9150

USD 1204-1238

-CNY 50-100

-USD 8-16

LLDPE (North China)

CNY 8500-8700

USD 1150-1177

-CNY 100-150

-USD 16-23

**All USD equivalent prices are exclusive of 13% VAT

 

Total inventories at Sinopec and CNPC’s reduced 10,000 tons day-on-day to 860,000 tons as of 09 April 2021.

After two consecutive days of price reductions, buyers decided to make replenishment to cover the immediate needs, however, most transactions are for small quantities. At the time of this report, sentiment in the local ground remains soft, though sellers hope to counterbalance the situation by the lower inventory pressure ahead of the maintenance shutdown season. 

In the meantime, there are still export inquiries for LDPE from South American customers, yet demand for other grades is diminishing, market sources said. 

 

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China