Morning Briefing - 01 November 2024
CommoPlast
Morning Briefing
01 November 2024
Brent: $73.16 (+ $0.61)
WTI: $69.26 (+ $0.65)
Naphtha CFR Japan: Holiday
Ethylene CFR NEA: Holiday
Ethylene CFR SEA: Holiday
Propylene FOB Korea: Holiday
Propylene CFR China: Holiday
*Data represent closing prices of the previous trading day
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The Chinese polypropylene (PP) market is poised for a substantial supply increase as eight new plants, with a combined annual capacity of 4.5 million tons, are slated to come online. Six of these facilities are expected to start operations by year-end, with the remaining two beginning in early 2025.
In response, Chinese buyers have noticeably slowed their purchasing activity, anticipating that rising inventory levels will exert pressure on local sellers, potentially prompting larger discounts as the year draws to a close. Meanwhile, market participants are closely watching the upcoming National People’s Congress for potential economic stimulus and policy guidance that could shape near-term market conditions.
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Despite recent government support for the property sector, demand for PVC in China remains subdued, with weak buying interest continuing to pressure the local market. Spot offers for both carbide-based and ethylene-based PVC have been tracking a stable to CNY50/ton lower this week.
Market sources indicate that the primary factor preventing a deeper decline is anticipation of potential fiscal stimulus measures from the upcoming National People’s Congress, scheduled for November 4–8. However, there is concern that any underwhelming stimulus package could accelerate the market's downturn.
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