Morning Briefing - 30 July 2024
CommoPlast
Morning Briefing
30 July 2024
Brent: $79.78 (- $1.35)
WTI: $75.81 (- $1.35)
Naphtha CFR Japan: - $12
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: - $5
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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The Indonesian PP and PE markets continued their downward trajectory at the start of the week. Despite this, buying sentiment has shown a slight improvement compared to the previous week, driven primarily by restocking activities.
An abrupt production disruption at Chandra Asri’s plant has stoked fears among local buyers of a substantial supply curtailment in the near term. The producer's ongoing struggles to deliver previously sold cargoes on time, compounded by already heavy delays in import arrivals, have exacerbated these concerns.
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The downtrend in the Chinese PE market persisted, with at least three major international suppliers down-adjusting import LLDPE film offers to China. However, no immediate deals were reported as negotiations remained fierce.
Despite the government's targeted subsidies aimed at stimulating local consumption, Chinese market participants lacked confidence in the near-term outlook. Buying ideas for import LLDPE film hovered at the low $900/ton range, while LDPE film offers were consistently below the $1100/ton threshold.
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