Morning Briefing - 04 October 2024
CommoPlast
Morning Briefing
04 October 2024
Brent: $77.62 (+ $3.72)
WTI: $73.71 (+$3.61)
*Data represent closing prices of the previous trading day
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Crude oil prices surged by over 5% on Thursday, October 3, 2024, driven by escalating concerns over the potential for a full-scale conflict in the Middle East. Prior to this, China’s pre-Golden Week restocking activities had already sparked optimism about post-holiday market prospects. The sharp increase in energy prices has further strengthened this outlook, prompting international sellers to delay new offers, particularly for PE, in anticipation of continued price increases in the coming week.
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Despite skepticism regarding the sustainability of a rally in the PVC sector, international trading houses have maintained firm import offers for Chinese-origin PVC cargoes, citing concerns over rising restocking costs in the upcoming week. Malaysian buyers reported receiving new offers for Chinese ethylene-based PVC at $30/ton higher than the previous week. While further price hikes are anticipated, the sustainability of this upward trend remains uncertain and is likely contingent on whether the Chinese government implements additional economic stimulus measures within October.
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