Morning Briefing - 26 November 2024
CommoPlast
Morning Briefing
26 November 2024
Brent: $73.01 (- $2.16)
WTI: $68.94 (- $2.30)
Naphtha CFR Japan: - $7
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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A leading Indonesian producer kickstarted the week on a firm note, hiking nearly all PP and PE offers up by $8-14/ton. The only exception was PPBC, which held steady at the previous week’s level. The move aligned with broader expectations among suppliers, who have referred to the depreciation of the Indonesian rupiah against the dollar and tightened availability of Southeast Asian origin supply as grounds for price escalation.
Still, purchasers responded to the development by maintaining subdued purchasing habits. The lack of haste stemmed from sufficient inventories from prior procurements and vigilance to slow demand for finished products.
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At least two other Middle Eastern producers announced December PE shipment offers to Southeast Asia earlier this week, reflecting reductions of $10-40/ton for HDPE film and $10-30/ton for LLDPE film, depending on the specific market. These adjustments align with market expectations, driven by intensified competition from competitively priced US cargoes and challenges related to currency exchange rates.
Negotiations remain underway at the time of this report. However, Vietnamese buyers have demonstrated significant resistance to LLDPE film cargoes offered at $990/ton on CIF terms. Meanwhile, most bids for HDPE film are concentrated in the low $900/ton range, with no immediate transactions reported thus far.
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