Morning Briefing - 18 November 2024
CommoPlast
Morning Briefing
18 November 2024
Brent: $71.04 (- $1.52)
WTI: $67.02 (- $1.68)
Naphtha CFR Japan: - $11
Ethylene CFR NEA: Stable
Ethylene CFR SEA: - $20
Propylene FOB Korea: - $10
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
____________________________________________________________________
The Chinese PET bottle market rebounded by CNY50-100/ton in the week ending November 15, marking its first increase since the National Day holiday. This recovery was driven by a sharp 1.4% depreciation of the Yuan against the US dollar in the first half of November, alongside reduced sales pressure among Chinese suppliers. Industry sources noted that several weeks of consecutive price cuts had drawn buyers back into the market, enabling sellers to clear some on-hand inventory.
However, challenges remain that could limit significant price gains. Reduced demand from the beverage sector, typical during the winter months in the Northern Hemisphere, is expected to weigh on the market. As a result, Chinese PET bottle producers may sustain low operating rates during this period, potentially mitigating downward pressure in the highly competitive landscape.
____________________________________________________________________
The Southeast Asian PP market has shifted its focus to a potentially tighter supply outlook, driven by the scheduled shutdowns of several regional plants amid persistently poor production margins. Confirmed outages in Vietnam, Thailand, and the Philippines have already curtailed availability, while a potential supply disruption from a Malaysian facility adds to the uncertainty.
In response, trading houses in Vietnam and Indonesia have begun raising spot offers for locally held parcels, anticipating reduced allocations and higher replenishment costs. However, market sentiment remains cautious, as buyers adopt a wait-and-see approach, carefully evaluating the possible implications for pricing trends before committing to purchases.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.