Morning Briefing - 11 July 2024
CommoPlast
Morning Briefing
11 July 2024
Brent: $85.08 (+ $0.42)
WTI: $82.10 (+ $0.62)
Naphtha CFR Japan: -$14
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 Chinese PET bottle chip market continued its firming trend for the second consecutive week, driven by unexpected plant shutdowns by several producers, raising concerns about the near-term supply outlook.
According to CommoPlast's previous report, margin erosion has compelled several Chinese PET bottle producers to reduce their term contract commitments for the third quarter, providing them greater flexibility in adjusting production rates and spot pricing. Concurrently, buyers have retreated to the sidelines following a surge in panic buying last week. The ongoing off-peak season will test the efficacy of PET producers' strategies.
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In related plant news, South Korea’s GS Caltex is set to shut down its mixed feed cracker in Yeosu this September for maintenance and expansion. The plant is expected to remain offline for slightly over two months. Following this period, the production output of the cracker is projected to increase by 15-20%.
Additionally, the downstream HDPE line at the same site will also be shut down during this timeframe.
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