Morning Briefing - 03 September 2024
CommoPlast
Morning Briefing
03 September 2024
Brent: $77.52 (+ $0.59)
WTI: Holiday
Naphtha CFR Japan: - $22
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
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The Chinese PP and PE markets began the week under pressure, grappling with a convergence of bearish influences, including a sharp drop in crude oil futures, a weakening Dalian Commodity Exchange, and a significantly larger-than-anticipated rise in local inventories.
Sinopec and CNPC reported a staggering increase of 135,000 tons in stock levels—nearly three times the usual weekend accumulation. Despite this, Chinese suppliers remain resolute in maintaining their offers firm, asserting that demand will recover and buyers will return to the market. Notably, some large-scale converters in the PE film sector have reported a modest uptick in end-product orders, lending a cautious optimism to the near-term outlook.
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In India, a key local producer announced new offers for September delivery, reducing prices by INR 1,000/ton for PP and HDPE while keeping LLDPE and LDPE prices unchanged. All previous price protections have been rescinded.
Demand in the Indian market remains subdued, with the expected September rebound yet to materialize. Market sources indicate that competitively priced local materials are likely to deter significant interest in imported cargoes at this time.
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