Morning Briefing - 08 August 2024
CommoPlast
Morning Briefing
08 August 2024
Brent: $78.33 (+ $1.85)
WTI: $75.23 (+ $2.03)
Naphtha CFR Japan: - $5
Ethylene CFR NEA: + $5
Ethylene CFR SEA: + $5
Propylene FOB Korea: Stable
Propylene CFR China: - $1
*Data represent closing prices of the previous trading day
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In Indonesia, the domestic PP and PE markets remained firm as traders depleted a good number of cargoes in the previous week. However, buyers have completed fulfilling the immediate supply gap and prefer to wait on the sideline for now.
Conversely, import offers for homo-PP continue to decline, with large purchases of Thai and Vietnamese cargoes trading below the $1000/ton threshold. Market sources suggest that the falling regional prices are likely to exert downward pressure on the domestic market in the coming weeks.
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The Vietnamese PP and PE markets have shown little movement as trading activities remain subdued. Buyers are aggressively negotiating for discounts, reflecting a bearish outlook for the near-term market.
Current bids are being placed below $950/ton for homo-PP, $970 – 980/ton for LLDPE film, and $1150-1160/ton for LDPE film, CIF Vietnam. However, the significant gap between buying and selling prices has resulted in a lack of immediate transactions.
Despite the stagnation, buyers are keeping a close watch on the recent rebound in the Chinese LDPE film market. This recovery could influence the Vietnamese market dynamics, potentially prompting international suppliers to reject current bids for LDPE film to Vietnam, according to market sources.
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