Morning Briefing - 24 September 2024
CommoPlast
Morning Briefing
24 September 2024
Brent: $73.90 (- $0.59)
WTI: $70.37 (- $0.63)
Naphtha CFR Japan: - $1
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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At least two leading Middle Eastern PE producers have opened offers for October shipments to Southeast Asia, maintaining price levels mostly unchanged from the previous month. Market participants expressed surprise at the conservative pricing approach, especially for LLDPE film, given a range of supportive factors in the sector.
Negotiations are currently underway, with bids surfacing at $10-20/ton below the initial price listings for LLDPE film. The response to new HDPE film price lists has been notably poor. Buyers are largely anchoring their bids at the low $900/ton levels.
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Meanwhile, there have not been any major movements in the Southeast Asian PP market. Buyers here remained wary of a potential influx of Chinese PP materials following the Golden Week holiday, yet, Chinese sellers are reluctant to aggressively cut prices. Escalating production costs, combined with the depreciation of the US dollar against the Chinese yuan, are limiting Chinese sellers' ability to offer substantial discounts, leaving buyers in a state of hesitation.
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