Sep 26, 2023 11:02 a.m.

Morning Briefing - 14 Sept. 2023

CommoPlast CommoPlast Asia Sdn Bhd
Pre-holiday replenishment activities continue to take place in the domestic PP and PE market in China, though the latest round of price hike bumped into stiff resistance from buyers here
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Morning Briefing

14 September 2023

 

Brent: $91.88 (- $0.18)

WTI: $88.52 (- $0.32)

 

Naphtha CFR Japan: $717 (+ $6)

 

Ethylene CFR NEA: $825 (Stable)

Ethylene CFR SEA: $865 (Stable)

 

Propylene FOB Korea: $810 (+ $5)

Propylene CFR China: $855 (+ $5)

 

*Data represent closing prices of the previous trading day 

 

www.commoplast.com     

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At least four Chinese PP plants with a combined annual output of 2.35 million tons have decided to postpone the startup to 2024 due to poor economic. 

The rally in crude oil prices stemming from tightening supply from OPEC+ pushed key feedstocks including naphtha and propane to multi-month highs. Data showed that most Asian PP plants face squeezed margins, forcing many companies to operate at reduced rates for a prolonged period. 

The postponement of the new startup makes total economic sense at the current costs–selling price outlook. 

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Pre-holiday replenishment activities continue to take place in the domestic PP and PE market in China, though the latest round of price hikes bumped into stiff resistance from buyers here, signalling the recent rally might be nearing the peak. Besides, both of the sectors have now reached 2023’s all-time highs.

While rising at a slower pace compared to PP, the Chinese PE market also witnessed mixed pricing movement. Supply tightness keeps LDPE film at the lead while loosening spot availability anchor the LLDPE film segment.

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