Morning Briefing - 18 July 2024
CommoPlast
Morning Briefing
18 July 2024
Brent: $85.08 (+ $1.35)
WTI: $82.85 (+ $2.09)
Naphtha CFR Japan: Stable
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 market experienced a downturn this week, abruptly ending a three-week period of price increases. Despite maintenance shutdowns at several key Chinese plants, weak demand has stifled any potential for a sustained upswing. Market sources indicate that the overall supply situation remains surprisingly stable, with Chinese PET bottle chip plants operating at around 85% capacity—much higher than typically expected for this time of year.
Export offers have fallen by $10-15 per ton compared to the previous week. A survey from CommoPlast suggested that Chinese traders, in a bid to boost cash flow, are more willing to negotiate with serious buyers than producers.
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The Southeast Asian PE market experienced a subdued trading week, largely due to the absence of new import offers from key international suppliers ahead of August price announcements. The ongoing price correction in China and sluggish demand in India have significantly dampened the market outlook. Buyers in Southeast Asia are now anticipating further reductions in the upcoming offers.
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