Morning Briefing - 04 June 2024
CommoPlast
Morning Briefing
04 June 2024
Brent: $78.36 (- $2.75)
WTI: $74.22 (- $2.72)
Naphtha CFR Japan: $673 (- $5)
Ethylene CFR NEA: $850 (Stable)
Ethylene CFR SEA: $950 (Stable)
Propylene FOB Korea: $825 (Stable)
Propylene CFR China: $855 (Stable)
*Data represent closing prices of the previous trading day
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Oil market tumbled on Monday, 3 June 2024 after OPEC+ decided to unwind the voluntary output cuts from 8 members as early as October this year, which stoked concerns that supply would increase while demand has been slowing.
The four consecutive declining sessions in the oil market dent confidence among Asian market participants in the petrochemical sector. Buyers are closely monitoring the development instead of committing to new purchases immediately.
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In China, the local PP and PE market began the week on a soft note. The nosedived Dalian Commodity Exchange had a negative impact on the domestic spot market while sources said that the CNY50/ton discount on spot cargoes failed to yield any satisfactory demand.
While PE converters in China enjoy relatively stable end-product orders, many woven bag makers have already slashed operating rates to around 45% this week. The current raw material costs are unaccommodating for these converters.
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