Morning Briefing - 01 August 2024
CommoPlast
Morning Briefing
01 August 2024
Brent: $80.72 (+ $2.09)
WTI: $77.81 (+ $3.18)
Naphtha CFR Japan: + $8
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: - $5
*Data represent closing prices of the previous trading day
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In a twist that has sent ripples through the Indonesian market, customers are making a swift return to replenish stocks after an unexpected shutdown at a key local plant. This shutdown led to significant delays in the delivery of previously sold cargo, creating a stir among traders and buyers alike.
With import arrivals also facing delays, concerns over the supply outlook for August have surged. Sensing an opportunity, local traders have hiked spot PP and PE offers, capitalizing on the tightened market conditions.
However, buyers are treading carefully. Rather than making large speculative purchases, they are focusing on covering their immediate production needs for the next month. This cautious approach highlights the market's uncertainty and the delicate balance between supply and demand.
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In China, the market reacted favorably to the recent rebound on the Dalian Commodity Exchange, injecting a bit of cheer into an otherwise stagnated landscape. While domestic spot PP and PE prices remained largely stable, sellers reported a notable uptick in transactions compared to earlier in the week.
Traders, however, are keeping their optimism in check. One source remarked, "The market's structural weakness remains evident. While there are short-term positive movements, the overall outlook remains fragile. As such, we attempt to move as much cargo as possible."
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