Morning Briefing - 21 Sept. 2023
CommoPlast
Morning Briefing
21 September 2023
Brent: $93.53 (- $0.81)
WTI: $90.28 (- $0.92)
Naphtha CFR Japan: $708 (- $10)
Ethylene CFR NEA: $840 (Stable)
Ethylene CFR SEA: $865 (Stable)
Propylene FOB Korea: $820 (+ $10)
Propylene CFR China: $860 (+ $5)
*Data represent closing prices of the previous trading day
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The Southeast Asian homo-PP market continued to track stable to firmer trends on the back of strong upstream costs. On the other hand, demand remained unchanged as buyers were not confident enough to accept prices above the $1000/ton threshold while the strengthening US dollar made imports more expensive.
Market participants are monitoring closely the prospect of the post-Golden Week demand conditions, with several buyers highlighting the possibility of a moderate price correction due to higher inventory pressure among Chinese sellers that built throughout the long holiday.
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According to Indian customers, a Taiwanese producer seemed struggling to deplete the October PVC allocation to this market. A day after the new price announcement, the maker apparently only managed to sell off 20% of the quantities.
The dwindling demand spurred speculations that further price reductions might become necessary to attract buying interest.
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