Morning Briefing - 16 May 2024
CommoPlast
Morning Briefing
16 May 2024
Brent: $82.75 (+ $0.37)
WTI: $78.63（+ $0.61)
Naphtha CFR Japan: $659 (- $5)
Ethylene CFR NEA: $855 (Stable)
Ethylene CFR SEA: $980 (Stable)
Propylene FOB Korea: $815 (Stable)
Propylene CFR China: $845 (Stable)
*Data represent closing prices of the previous trading day
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Trading sentiment in the local PP market in China continues to deteriorate as buyers closely monitor the improving supply condition while export activities are hampered by the surge in shipping costs. While key domestic producers are adamant on their price lists, local traders have been actively discussing a possible price correction citing the growing sales pressure in the distribution markets.
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In Southeast Asia, the PE segment is rather calm ahead of the June price announcement. Initial assessment indicates a stable to firmer trend compared to May, driven by the tighter availability, particularly for LDPE grade, and the strong freight rates.
On the other hand, regional PP buyers portray no real interest in making large purchases at the moment. With cargoes from China constantly available coupled with the restart at Vietnam’s Nghi Son and Binh Son and Malaysia’s PrefChem, there is a severe lack of confidence in the near-term outlook
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