Morning Briefing - 12 June 2024

CommoPlast

Morning Briefing

12 June 2024

Brent: $81.92 (+$0.29)

WTI: $77.90 (+$0.16)

Naphtha CFR Japan: +$12

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: +$5

Propylene CFR China: +$5

*Data represent closing prices of the previous trading day 

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The Chinese PP and PE market resumed trading following the long weekend holiday on a soft note as buyers took time to assess the near-term outlook before jumping into action. Local inventories soared by 75,000 tons throughout the three-day break.

Nevertheless, Chinese suppliers did not appear concerned about the inventory pressure. A number of local PE plants embarking on scheduled shutdown in the third quarter are expected to curtail availability, particularly for LDPE.   

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The global shipping industry continued to face severe container shortages, which coupled with the heavy port congestion in Asia, are pushing freight rates higher. According to a report from Bloomberg, shipping lines are rushing to order new containers at the moment. Most shipping container manufacturers in China are operating at full capacity while having substantial orders until the end of the summer. 

It might take a couple of months for these new boxes to hit the market.

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