Morning Briefing - 27 June 2024
CommoPlast
Morning Briefing
27 June 2024
Brent: $85.25 (+ $0.24)
WTI: $80.90 (+ $0.07)
Naphtha CFR Japan: - $1
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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The divergence in the Chinese LDPE sector remained the highlight of the market toward the weekend. While two Saudi Arabian producers lifted import LDPE film offers to China by $75-100/ton compared to the previous price announcement, the domestic spot market started to soften due to the lack of demand.
Market sources indicated that international suppliers are trying to align with the recent rally in the local market. However, the peak in domestic offers and the availability of more competitively priced U.S. materials pose challenges for Saudi suppliers to fully realize their intended price hikes in China.
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Meanwhile, ocean freight rates from China to certain routes have started to ease, suggesting that the recent upsurge might have peaked. Market sources reported that booking fees from main ports in Southern China to India have fallen below $4,000 per 40-foot container this week. In contrast, suppliers in Northern China reported no changes in freight rates.
This development indicates potential stabilization in shipping costs, which could impact trade dynamics in the coming weeks.
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