Morning Briefing - 07 November 2024
CommoPlast
Morning Briefing
7 November 2024
Brent: $74.92 (- $0.61)
WTI: $71.69 (- $0.30)
Naphtha CFR Japan: - $9
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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The Chinese PVC market continued to soften this week, though the pace of decline has moderated, with spot offers down by only CNY 50/ton from the previous week. Industry sources indicate that local producers may consider halting production if prices fall below the critical CNY 5000/ton threshold.
Despite a cautious optimism fueled by potential stimulus measures from the upcoming National People's Congress (NPC) meeting, significant challenges persist. Weak export demand, particularly from India—where regulatory changes, including an anti-dumping investigation and the Quality Control Order, are on the horizon—could weigh further on the local market in the near term.
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Russia has surpassed the UAE to become Taiwan's leading supplier of naphtha, accounting for 66% (180,000 barrels) of Taiwan’s imports in October. This surge in Russian supply follows the recent commissioning of a third condensate splitter at Novatek PJSC’s Ust-Luga refinery, boosting naphtha output from the facility. Taiwanese producers swiftly leveraged the increased supply, absorbing 78% of Novatek's exports from the Baltic Sea port.
With one of Ust-Luga’s refineries set to resume operations after a maintenance shutdown, Russia is well-positioned to maintain its lead as Taiwan’s top naphtha supplier in the near term.
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