Morning Briefing - 19 August 2024

CommoPlast

Morning Briefing

19 August 2024

Brent: $79.68 (- $1.36)

WTI: $76.65 (- $1.51)

Naphtha CFR Japan: $674 (- $1)

Ethylene CFR NEA: $875 (Stable)

Ethylene CFR SEA: $935 (+ $5)

Propylene FOB Korea: $850 (Stable)

Propylene CFR China: $865 (Stable)

*Data represent closing prices of the previous trading day 

www.commoplast.com     

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The Vietnamese LDPE film market ended the trading week on a dramatic note as a Malaysian producer slashed prices by an additional $110/ton from their initial offer, following weak market responses. This reduction brings the total price drop for September-loading cargoes to $170/ton compared to the previous month.

While regular customers purchased small quantities to average down overall costs, the market exhibited strong resistance to import LDPE film priced above $1200/ton.

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Meanwhile, Asian market participants anxiously waiting for a major Taiwanese producer to announce September PVC shipment offers, and given the presence of competitive Chinese materials, players believed that new offers would fall sharply from August.

The Chinese PVC market plummeted further this week, with prices nearing the historical lows observed during the initial pandemic lockdown in April 2020. The local market's weakness enabled Chinese suppliers to slash export offers significantly. Combined with falling shipping costs, this attracted substantial interest from Indian buyers. 

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