Morning Briefing - 12 August 2024
CommoPlast
Morning Briefing
08 August 2024
Brent: $79.66 (+ $0.50)
WTI: $76.84 (+ $0.65)
Naphtha CFR Japan: Holiday
Ethylene CFR NEA: Holiday
Ethylene CFR SEA: Holiday
Propylene FOB Korea: Holiday
Propylene CFR China: Holiday
*Data represent closing prices of the previous trading day
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Mounting concerns over a ballooning supply outlook for the latter half of August compelled local traders in Northern Vietnam to slash homo-PP offers drastically at the end of last week. Deals for locally produced cargoes were struck at prices dipping below the VND 27,000,000/ton threshold (including VAT), signaling a notable market shift.
A trader defended this aggressive pricing move by citing several factors: a plummeting import market, persistently weak demand, and the imminent operational launch at Long Son Petrochemical.
Meanwhile, the Southern Vietnam market remained relatively stable, albeit with sparse transaction activity. The prevailing sentiment suggests the market is poised to continue its downward trajectory in the near future.
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In China, traders' recent attempts to hike spot LDPE film offers have faltered as buyers, who are well-stocked and wary of higher prices, have pushed back. This retreat was particularly pronounced in Eastern China, where prices dropped by CNY 100/ton.
In contrast, the LLDPE film market displayed relative stability, fueling speculation that the sector's recent downward trend might have hit rock bottom.
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