Morning Briefing - 08 November 2024
CommoPlast
Morning Briefing
8 November 2024
Brent: $75.63 (+ $0.71)
WTI: $72.36 (+ $0.67)
Naphtha CFR Japan: + $2
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: - $5
Propylene CFR China: - $5
*Data represent closing prices of the previous trading day
____________________________________________________________________
The local Indian PVC market turned firmer following provisional announcements of anti-dumping duties on producers from seven countries. Leveraging the potential supply tightness, a leading domestic producer raised prices by INR 2,000/ton ($24/ton), with other suppliers making similar increases.
Despite the price hikes, buyers remained active, driven by the need to restock after the Diwali holiday. However, there was no sign of panic buying, particularly among importers, as participants were mindful of possible logistical bottlenecks and potential shipment delays.
____________________________________________________________________
In Indonesia's homo-PP market, importers may soon shift focus to the local market as the cost gap between imported and domestic materials narrows. Considerations to do so have arisen from observations that the rupiah’s depreciation and increased freight costs have made imports less competitive. These factors have cast doubt on the import sector’s viability as an alternative to domestic options at the moment.
According to Oanda data, rupiah has weakened nearly 4% against the dollar since early October. Meanwhile, freight costs from China have risen by $40/ton. These premiums have added to the hefty burdens converters have had to bear amid already thinning margins due to eroding end demand.
It is reported that some importers have already begun negotiations with domestic traders.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.