Morning Briefing - 22 July 2024
CommoPlast
Morning Briefing
22 July 2024
Brent: $82.63 (- $2.48)
WTI: $80.13 (- $2.69)
Naphtha CFR Japan: $700 (- $6)
Ethylene CFR NEA: $857 (Stable)
Ethylene CFR SEA: $925 (Stable)
Propylene FOB Korea: $855 (Stable)
Propylene CFR China: $875 (Stable)
*Data represent closing prices of the previous trading day
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Despite a general calm in the Asian PVC market ahead of August price announcements, China saw a surge in heavy speculation. Local suppliers, leveraging reduced inventory pressures from recent production disruptions and operating rate cuts, hiked spot offers by up to CNY 200/ton from the previous week.
Additionally, some sellers speculate that, without confirmation from the Indian government on delaying the implementation of the BIS certification, other Asian PVC producers might seize the opportunity to raise their offers to India. This maneuver capitalizes on the void left by Chinese materials, given that most Chinese producers still lack the BIS certification.
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In response to sluggish demand conditions, a major local producer in India has rolled out several discount schemes to encourage purchases of polypropylene (PP) and polyethylene (PE). These incentives include flat discounts on select grades, with further price reductions available based on the customer's annualized APR quantity.
By employing these aggressive pricing strategies, the producer aims to boost sales and mitigate the impact of the current market downturn.
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