Morning Briefing - 7 August 2023
CommoPlast
Morning Briefing
07 August 2023
Brent: $86.24 (+ $1.10)
WTI: $82.82 (+ $1.27)
Naphtha CFR Japan: $653 (+ $15)
Ethylene CFR NEA: $810 (+ $20)
Ethylene CFR SEA: $810 (+ $20)
Propylene FOB Korea: $755 (Stable)
Propylene CFR China: $805 (Stable)
*Data represent closing prices of the previous trading day
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Data from CommoPlast showed in the first six months of 2023, China added 6 new PP plants with a combined capacity of about 2.6 million tons per annum. There are 6 other new projects with a nameplate output of 5.1 million tons scheduled to come online in the second half of the year.
Although key contracts for September delivery on Dalian Commodity Exchange have been benefiting from the bullish sentiment surrounding the Chinese government’s promises to boost the economy, to a certain extent, PP futures are always traded at softer levels than LLDPE due to a more comfortable supply outlook.
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The Asian PVC market has wrapped up August businesses and currently waiting for key regional suppliers to announce September shipment offers. Taking into account the active purchasing activities in the Indian market, sources believe the uptrend is here to stay.
Opinions called for $50-60/tom hikes month-on-month, especially after a key Indian producer lifted local offers twice this month, amounting to INR3,500/ton ($42/ton).
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