Morning Briefing - 24 July 2023
CommoPlast
Morning Briefing
24 July 2023
Brent: $81.07 (+ $1.43)
WTI: $77.07 (+ $1.42)
Naphtha CFR Japan: $601 (+ $3)
Ethylene CFR NEA: $770 (Stable)
Ethylene CFR SEA: $745 (Stable)
Propylene FOB Korea: $735 (Stable)
Propylene CFR China: $780 (+ $5)
*Data represent closing prices of the previous trading day
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Latest data showed that in the first six months of 2023, China consumed about 16.8 million tons of PP, indicating a 5% growth from the same period last year despite the heightened economic challenges. Meanwhile, PE consumption grew 4.6% year-on-year during the same period.
In both sectors, the continued expanding domestic production was the main factor driving the growth. It is worth highlighting that China is adding fewer PP plants this year as local supply has met 92% of the demand.
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Mimicking the firming trend observed in the nearby China market, a couple of Middle Eastern suppliers decided to lift import HDPE film offers to Vietnam to above the $1000/ton threshold even though resistance is building up.
Supply for the grade remained tight at the moment. Still, the dwindling finished goods orders encouraged converters to adopt a cautious stance when it comes to accepting higher price levels.
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