Morning Briefing - 23 Aug. 2023
CommoPlast
Morning Briefing
23 August 2023
Brent: $84.03 (- $0.43)
WTI: $80.35 (- $0.37)
Naphtha CFR Japan: $655 (- $5)
Ethylene CFR NEA: $830 (Stable)
Ethylene CFR SEA: $860 (Stable)
Propylene FOB Korea: $780 (Stable)
Propylene CFR China: $820 (Stable)
*Data represent closing prices of the previous trading day
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The Chinese LDPE film market continued to gallop higher on the back of tightening availability following the supply disruption from key Iranian producers and reduced allocations from other regular sources of supply.
Data from CommoPlast showed spot LDPE film traded in the local China market hit 2023’s all-time highs with market participants expecting the firming trend to persist in the near term.
Meanwhile, in the import market, several deals have been reached for regular LDPE film cargoes in the range of $1020-1050/ton based on CFR China terms.
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The Southeast Asian PE market remains on an upward trajectory as more international suppliers opened September shipment offers with large hikes. Negotiations are still ongoing, however, with the resilient upswing observed in the nearby China market coupled with strong ethylene costs, it is less likely that sellers would concede to any major discounts.
On the other hand, the regional PP market seemed to hit a plateau following weeks of rally. Trading activities are so sluggish that some sellers started to focus on the South Asian market, where demand is better.
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