Morning Briefing - 23 September 2024
CommoPlast
Morning Briefing
23 September 2024
Brent: $74.49 (- $0.39)
WTI: $71.92 (- $0.03)
Naphtha CFR Japan: $653 (- $7)
Ethylene CFR NEA: $840 (- $20)
Ethylene CFR SEA: $940 (- $10)
Propylene FOB Korea: $815 (- $5)
Propylene CFR China: $850 (Stable)
*Data represent closing prices of the previous trading day
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While Southeast Asian market participants have generally accepted a consensus that supply tightness and steady demand in China would support the regional LLDPE film market in the near term; concerns over LDPE film remained in place.
Over the past week, buyers in the region have consistently reported a steady flow of LDPE film offers, some accompanied by special discounts, which have exacerbated uncertainty around the market's prospects. The substantial premium that LDPE film continues to command over LLDPE film is eroding buyer confidence and reinforcing a cautious, wait-and-see approach.
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The Chinese PVC market has continued to plunge, hitting new lows not seen since the height of the pandemic in April 2020, following the Mid-Autumn Festival. Efforts by the Chinese government to stabilize the property market, including relaxing restrictions for non-local buyers in cities such as Beijing and Shanghai, have so far failed to yield any meaningful recovery.
Asian market participants are anxiously awaiting October shipment offers from a major Taiwanese producer, though the combination of ample supply from China and tepid demand regionwide are expected to stifle any potential price increases despite strong sales results in September.
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