Morning Briefing - 06 December 2024

CommoPlast

Morning Briefing

6 December 2024

Brent: $72.09 (- $0.22)

WTI: $68.30 (- $0.24)

Naphtha CFR Japan: - $8

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: + $10

*Data represent closing prices of the previous trading day 

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The Indonesian Anti-Dumping Committee (KADI) has initiated an anti-dumping investigation targeting homo-PP imports from eight countries, acting on a petition filed by local producer PT Chandra Asri Pacific Tbk. Cited among the reasons for the probe was preliminary evidence of dumping practices and associated financial woe to the domestic PP industry. Stakeholders must submit their responses to a questionnaire issued by the committee by December 17.

This latest development highlights the Indonesian government’s commitment to protect local industries from potential harm arising from its import market. The latest investigation accompanies ongoing probes into alleged anti-dumping activities in the PP block copolymer and LLDPE sectors.

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The Chinese PET market has shown signs of stability, following efforts by producers to arrest a further slide into new 2024 lows. These initiatives, aided by a modest recovery in crude oil prices and planned maintenance shutdowns at two local PET plants, have kept spot offers from slipping beneath the crucial CNY 6,000/ton threshold, EXW China, VAT included. Export offers also saw a modest $10/ton increase at the lower end.

While taking a sigh of relief, the PET industry remains vigilant to ongoing challenges to sustained stability. Volatility in crude prices, heavy sales pressure in upstream PET markets, and weak off-season demand continue to weigh on the market, fomenting fears of a potential relapse. 

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