Morning Briefing - 02 October 2024
CommoPlast
Morning Briefing
02 October 2024
Brent: $73.56 (+ $1.86)
WTI: $69.83 (+$1.66)
*Data represent closing prices of the previous trading day
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The Southeast Asian PP and PE market exhibited subdued trading activity, largely attributed to the absence of key suppliers from China and South Korea. Ongoing discussions are centered on the anticipated pricing trends for the coming week, with market participants showing a growing acceptance of a potential price firming. The sharp rise in the energy sector has further strengthened these expectations.
However, skepticism remains regarding the sustainability of any potential upswing, as real demand from converters continues to show no significant improvement. This lack of tangible demand recovery raises concerns about the market's capacity to sustain a price increase, despite the current bullish sentiment.
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In India, a major local producer has maintained spot HDPE and LLDPE prices for October delivery at the previous month’s levels, while lowering LDPE prices by INR 4,000/ton ($48/ton). This move is largely attributed to persistently weak demand and ample supply.
Despite a bullish sentiment in China, buyers in India are exercising caution, refraining from excessive stockpiling. This hesitance is driven by the comfortable supply conditions in the local market, which continue to dampen the urgency for aggressive purchasing strategies.
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