Morning Briefing - 26 September 2024
CommoPlast
Morning Briefing
26 September 2024
Brent: $73.46 (- $1.71)
WTI: $69.69 (- $1.87)
Naphtha CFR Japan: Stable
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Trading activities in the Chinese polyolefins market were boosted by the economic stimulus rush as buyers actively procured additional cargoes ahead of the National Day holiday. The strong uptick in pre-holiday replenishment activities helped key local producers – Sinopec and CNPC to bring down their combined PP and PE stock below the 700,000 tons threshold, which, coupled with the government’s promise of more stimulus ahead, fuelled bullish expectations on the outlook in October.
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The Southeast Asian PP and PE markets remained largely unaffected by the increased buying sentiment in the nearby Chinese market. Several deals for South Korean homo-PP were finalized in Vietnam with discounts of $20-30/ton from the initial price list, while two Middle Eastern suppliers set final prices for October PE shipments with only slight reductions.
However, the availability of Middle Eastern linear LLDPE film remains relatively constrained. At least two Saudi Arabian producers have significantly reduced LLDPE allocations to Vietnam, raising concerns about local supply in the coming month.
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