Morning Briefing - 19 Septemebr 2024
CommoPlast
Morning Briefing
19 September 2024
Brent: $73.65 (- $0.05)
WTI: $70.91 (- $0.28)
Naphtha CFR Japan: + $1
Ethylene CFR NEA: Stable
Ethylene CFR SEA: - $15
Propylene FOB Korea: Stable
Propylene CFR China: + $5
*Data represent closing prices of the previous trading day
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China's PP and PE markets resumed trading on a weak note, pressured by declining futures contracts on the Dalian Commodity Exchange. Market participants reported difficulty in stimulating buying interest among PP customers, signaling broader concerns over demand. In contrast, buyers in the agricultural film sector continued to replenish stocks of LLDPE and LDPE film, even as prices edged higher.
Inventory accumulation during the holiday period totaled just 65,000 tons, falling significantly short of the expected 90,000-120,000 tons. This lower-than-anticipated buildup indicates that Chinese producers currently face little inventory pressure. However, the landscape could shift following the upcoming weeklong National Day holiday.
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Supply tightness for LLDPE film intensified across Southeast Asia by midweek, with Malaysian buyers reporting a noticeable scarcity of spot availability—a trend mirrored in the Vietnamese market. In Indonesia, a major trading house ignored steep price cuts from a local producer earlier in the week, instead raising LLDPE film offers by $25/ton for domestic buyers. The move was attributed to the acute shortage of readily available stock, further underscoring the tightening market conditions across the region.
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