Morning Briefing - 16 July 2024
CommoPlast
Morning Briefing
16 July 2024
Brent: $84.85 (- $0.18)
WTI: $81.91 (- $0.30)
Naphtha CFR Japan: -$2
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
……………………………………………………………….
The Indonesian PP and PE market has continued its downtrend following a significant reduction in spot PP and PE offers by a major local producer for the third consecutive week this month. Compared to late June, spot offers from the producer have decreased by IDR 1,930,000/ton ($119/ton) for LLDPE film, IDR 1,950,000/ton ($120/ton) for HDPE film, and IDR 2,690,000/ton ($166/ton) for homo-PP yarn and injection.
This aggressive pricing strategy has severely undermined buyer confidence, resulting in sluggish trading activities. Industry sources believe that overseas sellers will soon feel the pressure and adjust their import offers accordingly.
……………………………………………………………….
In China, the local market kickstarted the new week on a soft note despite the commencement of the Third Plenary Session meeting. A series of disappointing macroeconomic data including the softer-than-expected GDP and slower industrial output growth weighed on the outlook.
While the PP sector maintained stability, the Chinese PE market continued to decline, with spot HDPE film prices falling below CNY 8,000/ton and spot LDPE film dropping by an additional CNY 250/ton from the previous week. The correction in the PE sector has yet to slow down.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.