Morning Briefing - 22 August 2024
CommoPlast
Morning Briefing
22 August 2024
Brent: $76.05 (- $1.15)
WTI: $71.93 (- $1.24)
Naphtha CFR Japan: + $9
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: - $3
Propylene CFR China: + $7
*Data represent closing prices of the previous trading day
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The Asian ethylene market surged to its highest levels since early May 2024 this week, as regional spot availability sharply declined due to a series of production disruptions in Far East Asia and diminished supply from the US.
Supply tightness has intensified as Japan’s Mitsui Chemicals shut both of its crackers while Taiwan’s Formosa Petrochemical Corp (FPC) has no clear timeline for the restart schedule at the No. 2 cracker in Mailiao.
Industry insiders also reported a reduced number of US cargoes in recent weeks as the series of production outages in the North American region pushed local prices higher and narrowed the export window to Asia.
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Vietnam’s Long Son Petrochemical has resumed offering spot homo-PP and HDPE film to the local market, following the successful restart of its upstream crackers last week. Despite the reentry of this supply, the new offers are struggling to find traction amid challenging market conditions.
Market participants noted that these prices are on the higher end, particularly for HDPE film, raising questions about their competitiveness. "The offers are unappealing at the current price levels, especially for HDPE film. However, there might be room for negotiation," commented a local buyer.
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