China Morning Snapshot – 09 April 2021

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:

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.