Morning Briefing - 05 Dec. 2023
05 December 2023
Brent: $78.03 (- $0.85)
WTI: $73.04 (- $1.03)
Naphtha CFR Japan: $651 (- $16)
Ethylene CFR NEA: $860 (Stable)
Ethylene CFR SEA: $940 (Stable)
Propylene FOB Korea: $810 (Stable)
Propylene CFR China: $850 (Stable)
*Data represent closing prices of the previous trading day
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In Indonesia, local traders continued to lift PP and PE prices on the back of reduced on-hand inventory pressure and expectations that the proposed Government Regulation (PP) no. 46/2023 to regulate import arrivals might further tighten supply in 2024.
Converters become less active in the local market. Except for those from the flexible packaging sector, other segments have not seen any major improvement in finished goods demand. Some buyers are checking for the viability of securing additional import cargoes, though deals were thin on the first day of the week.
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In China, the domestic spot market marched lower, shedding another CNY50/ton on the week's first trading day. The combined PP and PE stocks belonging to Sinopec and CNPC have gained 90,000 tons since last Thursday to 680,000 tons as of 4 December 2023. Without being able to exploit the export opportunities, Chinese sellers would have to focus on the local market in the near term. At the time of this report, purchasing activities are mediocre, even in the agricultural film and flexible packaging sectors.
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In related industry news, Brazil lifted import duties on HDPE, LLDPE, LDPE, PP, and PVC from the current level of 11.2% to 12.6% effective immediately to ensure the competitiveness of the local industry.
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