Morning Briefing - 15 August 2024
CommoPlast
Morning Briefing
15 August 2024
Brent: $79.76 (- $0.93)
WTI: $76.98 (- $1.37)
Naphtha CFR Japan: $683 (- $1)
Ethylene CFR NEA: $875 (Stable)
Ethylene CFR SEA: $930 (Stable)
Propylene FOB Korea: $850 (Stable)
Propylene CFR China: $865 (Stable)
*Data represent closing prices of the previous trading day
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In a positive development, Chinese market participants remained active in the local and import markets despite the falling futures contracts on the Dalian Commodity Exchange. An increasing number of buyers believed that the recent downtrend in the PE sector might have reached the bottom, leading to an increase in buying activities, especially for LLDPE film.
In fact, at least two distribution channels reported to have sold out all available Qatari LLDPE film cargoes on the previous day after opening the offers at stable to $5/ton higher, highlighting the acceptance among buyers.
On the other hand, customers insisted on buying ideas for LDPE film below the $1100/ton threshold. Negotiations are ongoing at the time of this report.
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The initial signs of an uptick in China have failed to stimulate trading activities in the Southeast Asian PE sector, exposing a stark contrast in market dynamics. Middle Eastern suppliers, wary of the volatile conditions, are treading cautiously as they assess the market outlook ahead of the September price announcement, scheduled for the coming week.
Industry insiders speculate that for the import LLDPE film market in Southeast Asia to gain traction, prices will need to dip below the $1000/ton benchmark, mirroring similar price levels observed in both the Chinese and Indian markets.
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