Morning Briefing - 4 Sept. 2023
CommoPlast
Morning Briefing
04 September 2023
Brent: $88.55 (+ $1.72)
WTI: $85.55 (+ $1.92)
Naphtha CFR Japan: Holiday
Ethylene CFR NEA: Holiday
Ethylene CFR SEA: Holiday
Propylene FOB Korea: Holiday
Propylene CFR China: Holiday
*Data represent closing prices of the previous trading day
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The Chinese local PP and PE market ended a bumpy trading week on a firm note with PP rising as much as CNY150/ton from the previous session followed by LDPE film gaining CNY100/ton.
Chinese market participants once again found support for a brighter demand outlook even though the latest data showed both, manufacturing and service activities in the country remained dwindling. The Chinese government eased more rules for homebuyers, and cut lending and deposit rates, spurring expectations that local demand might improve further toward the year-end.
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Converters in the household product sector, which uses mostly homo-PP injection grade, have not received sufficient new PO for their finished goods and started selling the on-hand raw material stocks. In many cases, spot offers from this unlikely segment of sellers are below the market levels.
“It is not unfounded to expect homo-PP injection to be among the first to overturn the current upswing. Indonesian market is flooded with cargoes from a Malaysian plant,” said, a trading house.
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