Morning Briefing - 29 August 2024
CommoPlast
Morning Briefing
29 August 2024
Brent: $78.65 (- $0.90)
WTI: $74.52 (- $1.01)
Naphtha CFR Japan: - $19
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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In an interesting development, several key trading houses in Vietnam decided to lift local homo-PP offers by VND 200,000 – 500,000/ton ($8 – 20/ton) citing the squeezed margins and an uptick in demand in China.
Market participants generally believed that the recent downswing has reached the cyclical bottom and the market is likely to track a stable to slightly firmer trend in the post-Independence Day holiday, which takes place on 2 September.
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A leading domestic producer in Malaysia has announced significant reductions in PP and PE offers for September delivery, citing the ongoing price correction across Southeast Asia, a strengthened local currency, and persistently weak demand conditions.
The Malaysian Ringgit has appreciated by approximately 5.2% since the beginning of August, now standing at 4.36 to a US dollar. Typically, a stronger local currency exerts downward pressure on commodity prices traded in that currency.
Market sources also added that the spot availability of PP in Malaysia remains constrained, as both domestic producers are operating at significantly reduced rates.
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