China Morning Snapshot – 05 August 2021

September delivery contracts on Dalian Commodity Exchange settled the morning session higher, shrugging off the steel fall on the international energy complex. 

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

Total inventories at Sinopec and CNPC’s warehouses reduced 15,000 tons day-on-day to 735,000 tons as of 04 August 2021.

Trading sentiment remains stable in the domestic spot market compared to the previous day, however, has weakened slightly from earlier this week. Sources said that buyers have made comfortable replenishment, hence, showing no rush to proceed with fresh purchases at the moment. 

“The firmer price levels are only to reflex the strong futures market. Local producers are facing slow inventories digestion and our customers are well aware of the issue. Everyone is haggling aggressively for discount,” a trader reported.

In the meantime, inquiries from South Asian buyers hold steady, though limited interest in HDPE cargoes is seen.