Morning Briefing - 19 November 2024
CommoPlast
Morning Briefing
19 November 2024
Brent: $73.3 (+ $2.26)
WTI: $69.16 (+ $2.14)
Naphtha CFR Japan: - $2
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: - $5
*Data represent closing prices of the previous trading day
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In a surprising move, a major Indonesian producer reportedly maintained spot PP and PE offers in the domestic market, with the exception of mPE and HDPE blow molding grades, which saw an increase of $19-20/ton. The decision sparked criticism among local traders, who had anticipated higher offers following the sharp depreciation of the Rupiah. Meanwhile, key local trading houses have driven an upward trend, implementing two consecutive price hikes since late last week.
Buyers have secured some of their required volumes from the distribution market over the past few trading days but remain cautious, opting to stay on the sidelines during the ongoing Plastic and Rubber Indonesia Exhibition. Nonetheless, with Ramadan—a peak season for food packaging—on the horizon, traders remain optimistic about the demand outlook for December.
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With a major Taiwanese producer delaying the announcement of December PVC prices until next week, Asian market participants have begun discussing near-term market trends. Expectations remain divided. While Indian sources anticipate a moderate increase of $20-30/ton for December shipments, most Southeast Asian buyers adopt a more cautious outlook, predicting a price rollover.
Although the Indian government has yet to issue a final decision on the implementation of anti-dumping duties on PVC imports from seven countries, market participants have already started factoring the proposed levy rates into forthcoming offers. Industry players believe that suppliers from China and the USA may need to redirect some of their volumes to Southeast Asia, intensifying competition in the region.
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