Morning Briefing - 02 September 2024
CommoPlast
Morning Briefing
01 September 2024
Brent: $78.80 (- $1.14)
WTI: $73.55 (- $2.36)
Naphtha CFR Japan: + $17
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: + $5
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
____________________________________________________________________
In an unexpected move, a major trading house in Indonesia raised local PP and PE offers on the final trading day of the week by IDR 460,000 – 470,000/ton for HDPE film, IDR 1,090,000 – 1,100,000/ton for LLDPE film, and IDR 460,000 – 470,000/ton for homo-PP yarn.
The price hikes were met with resistance from Indonesian buyers. However, the trader justified the price increase, citing a rebound in demand in China and uncertainties surrounding the restart schedule of Chandra Asri Petrochemical’s plants. Market observers questioned the rationale behind such a move, given the ongoing weak end-product demand.
____________________________________________________________________
The Chinese PET bottle market is in a state of anticipation ahead of the inaugural PET futures contract trading on the Zhengzhou Commodity Exchange (ZCE). Despite lackluster trading sentiment in the domestic spot market, several Chinese producers reported increased inquiries from Latin American buyers following a decline in shipping costs.
However, the recent imposition of temporary anti-dumping duties ranging from 37% to 63% on PET resin imports from China by the Mexican government has sharply curtailed sales to Mexico, raising concerns about the impact of protectionist measures on export prospects.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.