Morning Briefing - 26 Sept. 2023
CommoPlast
Morning Briefing
26 September 2023
Brent: $93.29 (+ $0.02)
WTI: $89.68 (- $0.35)
Naphtha CFR Japan: $714 (- $5)
Ethylene CFR NEA: $890 (Stable)
Ethylene CFR SEA: $870 (Stable)
Propylene FOB Korea: $820 (Stable)
Propylene CFR China: $860 (Stable)
*Data represent closing prices of the previous trading day
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The domestic HDPE film market in Indonesia surged IDR400,000/ton on the first trading day of the week, hitting the highest levels since mid-March 2023. Aside from the strong upstream costs, limited availability has a vital role in supporting the latest rally.
On the other hand, Indonesian manufacturers in the packaging sector started witnessing a sharp drop in new orders stemming from the stuttering macroeconomic conditions. Buyers here are weighing the impact of the HDPE plant shutdown at Saudi Arabia’s SHARQ and Thailand’s PTT against the startup at Malaysia’s PrefChem and Vietnam’s Long Son Petrochemical.
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Meanwhile, the Southeast Asian homo-PP market started the week on a mixed note. While other suppliers continue to maintain offers on the stable to firmer track, a couple of Chinese sellers decided to step back on spot prices citing the continuous falling futures contracts and weakening local demand. The diverged pricing development further encouraged the already reluctant Southeast Asian buyers to adopt a cautious stance, believing that the uptrend might have reached a plateau.
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