Morning Briefing - 11 June 2024
CommoPlast
Morning Briefing
11 June 2024
Brent: $81.63 (+ $2.01)
WTI: $77.74 (+ $2.21)
Naphtha CFR Japan: +$6
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Although the ocean freight rates from China’s main ports to deepsea destinations such as Britain and Africa have inched slightly lower in recent days, Chinese sellers have been informed about potential hikes in booking fees to nearer markets such as Southeast Asia.
Prior to the long weekend holiday, Chinese market participants were not too concerned about the PE sector citing the limited supply condition. On the other hand, the PP market here faced dimming confidence. As China gradually turns net exporter for PP, the heightened shipping challenges hurdle export activities and potentially pressure the local market.
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In Indonesia, a key local producer continued to lift spot PP and PE offers, primarily to reflect the tightening supply outlook in the short term. The argument was that the heavy port congestion and container shortages would cause severe delays in import arrivals. Depending on the on-hand stock levels, buyers might have limited options but to accept the hikes.
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