Morning Briefing - 06 August 2024
CommoPlast
Morning Briefing
06 August 2024
Brent: $76.3 (- $0.51)
WTI: $72.94 (- $0.58)
Naphtha CFR Japan: - $17
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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Trading activities in the Asian polyolefin market nearly halted at the start of the week, beset by volatile currency exchanges, rising US recession fears, and escalating war threats in the Middle East.
With most sellers and buyers sidelined to gauge market developments, several Chinese PP producers raised export offers by $15-20/ton from the previous week, attributing the hike to the weakened US dollar against the Yuan. Overseas buyers, however, showed little enthusiasm in response.
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Following last week's local price cuts, a major Indian PP producer announced a new incentive scheme to stimulate buying interest. The scheme offers additional discounts based on the buyer’s annual quantity commitment:
- Over 7%: Discount A
- Over 9%: Discount B
- Over 11%: Discount C
- Over 13%: Discount D
The specific discount amounts (A, B, C, D) will be disclosed by the end of the month.
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In China, market sources debated the possibility of the LDPE film market hitting the cyclical bottom pointing to a curtail in import arrivals over the past week. While the sluggish demand conditions during the offpeak season might limit the extent of price rebound, sources believed that sellers might start to hold firm on their offers this week.
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