Morning Briefing - 30 August 2024
CommoPlast
Morning Briefing
30 August 2024
Brent: $79.94 (+ $1.29)
WTI: $75.91 (+ $1.39)
Naphtha CFR Japan: - $6
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: +$5
*Data represent closing prices of the previous trading day
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n the past week, Chinese buyers have intensified their search for competitively priced LLDPE film cargoes in the import market. Transactions have been concluded at elevated price levels, signaling a tentative rebound in both demand and pricing. However, as of this report, buyers are encountering increasing difficulties in securing additional volumes from overseas suppliers, even after multiple requests for extra allocations.
Market speculation suggests that suppliers are deliberately withholding allocations in anticipation of further price increases in the coming week, which would help in alleviating pressure on the bottom line.
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Following a sharp reduction in September shipment offers earlier this week, a major Taiwanese PVC producer has reportedly sold out its entire 25,000-ton allocation to the Indian market. This development has sparked a notable improvement in trading sentiment across the Asian PVC market, with buyers moving swiftly to secure additional cargoes amid expectations of a market rebound in the coming weeks.
A Southeast Asian buyer remarked, “Indian buyers may aggressively build stocks in the next couple of months following the government's decision to delay the implementation of the Quality Control Order to 24 December 2024. Combined with the end of the monsoon season, this could provide upward momentum to the market.”
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