Morning Briefing - 01 October 2024
CommoPlast
Morning Briefing
01 October 2024
Brent: $71.81 (+ $0.27)
WTI: $68.17 (- $0.01)
*Data represent closing prices of the previous trading day
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The Chinese polypropylene (PP) and polyethylene (PE) markets closed the final trading day of the month with strong activity, as local traders hurried to secure additional cargoes ahead of the weeklong National Day holiday. Market participants expressed optimism for the post-holiday period, expecting support from several factors, including government-led economic stimulus measures and manageable inventory levels among local producers.
However, the outlook remains tempered by uncertainty surrounding the volatile crude oil market, which could significantly impact sentiment and pricing dynamics in the near term. While bullish expectations prevail, the sustainability of any potential market recovery will largely depend on how external factors, particularly energy prices, evolve in the coming weeks.
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The PVC market in China experienced a sharp rebound after a steep decline that had pushed prices to levels not seen since the first pandemic lockdown in April 2020. Although actual demand from the key pipe sector remains sluggish, the market has been buoyed by optimism surrounding the government's initiatives to support the property sector.
On Monday, 30 September, spot prices for both carbide-based and ethylene-based PVC increased by CNY 200–250/ton compared to the previous week. However, this price recovery appears largely sentiment-driven, as fundamental demand conditions have yet to align with the recent price gains.
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