Morning Briefing - 23 July 2024
CommoPlast
Morning Briefing
23 July 2024
Brent: $82.4 (- $0.23)
WTI: $79.78 (- $0.35)
Naphtha CFR Japan: -$15
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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Key Middle Eastern producers have announced August PE shipment offers to Southeast Asia, with the latest price lists indicating a stable trend to $20-40/ton softer compared to July. This adjustment underscores ongoing market fragility and intensifying competition.
Buyers have started placing bids while closely monitoring developments in the nearby Chinese market to gauge potential near-term trends and adjust purchasing quantities accordingly. Concerns are mounting that the current downswing may not yet have reached its nadir.
The latest offers also highlight the pronounced weakness of the HDPE film grade compared to LLDPE and LDPE film. Sources believe that final prices for Middle Eastern HDPE film will need to drop below $1000/ton to attract buyers, reflecting a significant market strain.
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A Taiwanese producer has once again postponed the PVC price announcement for August loading amid volatile market conditions. Initial expectations indicated potential price reductions, though the extent of these adjustments is likely to vary across different markets.
The sharp drop in ocean freight rates from Far East Asia to India has led buyers to anticipate new offers falling between $60-80/ton, while changes in China and Southeast Asia are expected to be more modest.
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