Morning Briefing - 01 July 2024
CommoPlast
Morning Briefing
01 July 2024
Brent: $86.41 (+ $0.02)
WTI: $81.54 (- $0.20)
Naphtha CFR Japan: + $4
Ethylene CFR NEA: + $10
Ethylene CFR SEA: - $15
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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The explosion and emergency shutdown at China’s Tianjin Bohua Chemical did not immediately affect the local PVC market in China. Spot ethylene and carbide-based PVC offers remained on the stable to softer track as the bloated domestic inventory cushioned the market from the incident fallout.
In other reports, ocean freight rates from China to several routes, including India, Australia, and New Zealand started to come down in the week ending 28 June. Market participants are monitoring closely the development to gauge the impact on August shipment offers from key regional suppliers.
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Saudi Arabian producers set final PE prices for July loading to Vietnam with discounts of $10/ton on LLDPE film and $20-30/ton for HDPE film, underlining the general weakness in the HDPE sector.
Despite the persistent cautiousness among Vietnamese customers, a satisfactory number of deals have been reported. A consensus among buyers here is that the market might witness another round of price cuts in July, in line with the expected softer shipping costs, however, any potential reductions might be minor.
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Written and edited by: Rochelle Nguyen
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