Aug 06, 2021 2:48 a.m.

China Morning Snapshot – 18 June 2021

Sources are not confident in the near-term market outlook citing the dwindling futures trading as well as manufacturers’ inability to export end products.

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Major contracts for September delivery on the Dalian Commodity Exchange took a steep dive during the early trading hours but managed to recoup some losses by the end of the morning session. 

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

18 June 2021

Prices in CNY

USD Equivalent

Changes in CNY

Changes in USD

Combined and reported by CommoPlast

Dalian Commodity Exchange (Mid-day closing)

PP 2109

CNY 8232

USD 1129

-CNY 27

-USD 4

LLDPE 2109

CNY 7740

USD 1062

+CNY 25

+USD 4

Spot Domestic Prices (EXW China, Cash equivalent)

PPH (East China)

CNY 8300-8500

USD 1139-1166

-CNY 50

-USD 8

LLDPE (North China)

CNY 7700-7950

USD 1056-1091

+CNY 50

+USD 8

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

 

Total inventories on major local producers’ hands fell 10,000 tons from the previous day to 690,000 tons as of 18 June 2021.

There have not been major changes in trading activities in the local PP and PE market as buyers have made sufficient purchases over the past couple of days and prefer to wait on the side-line. Sources are not confident in the near-term market outlook citing the dwindling futures trading as well as manufacturers’ inability to export end products due to the shipping issues. 

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China