Morning Briefing - 07 June 2024
CommoPlast
Morning Briefing
07 June 2024
Brent: $79.87 (+ $1.46)
WTI: $75.55 (+ $1.48)
Naphtha CFR Japan: Stable
Ethylene CFR NEA: Stable
Ethylene CFR SEA: -$5
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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After holding back on replenishment throughout the first half of the week, Chinese PP and PE customers finally returned to the market, helped to bring the trading activities up a notch toward the weekend.
China will be off for the Dragon Boat Festival on Monday, 10 June, and the rebounded energy complex and the Dalian Commodity Exchange encouraged some pre-holiday replenishments.
Still, one of the most interesting developments is that several Chinese suppliers decided to step back on their export PP offers by $10-20/ton compared to earlier this week, which raised the question of whether the recent rally started to lose steam.
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In related industry news, Chinese market participants reported some easing in ocean freight rates this week as brokerage firms offer discounts on available slots due to the lack of demand. Market sources said that the downward adjustment has not made a dent in the recent skyrocketed booking fees while expecting further reductions to emerge moving forward, albeit in a gradual manner.
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