Morning Briefing - 10 December 2024

CommoPlast

Morning Briefing

10 December 2024

Brent: $72.14 (+ $1.02)

WTI: $68.37 (+ $1.17)

Naphtha CFR Japan: + $4

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: Stable

*Data represent closing prices of the previous trading day 

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Chinese PVC suppliers reduced export prices for carbide-based PVC by $5/ton at the start of the week, pushing prices to an unprecedented low. This decline was attributed to weakness in the Dalian Commodity Exchange and uncertainties surrounding the final outcome of India's anti-dumping investigation.

On the domestic front, buying activity slowed as buyers stepped back from the market following sufficient replenishments the previous week. Speculation arose about whether prices had reached a floor or might decline further. Market participants are now closely monitoring the upcoming Politburo meeting, where the Chinese government is anticipated to unveil additional pro-growth measures to mitigate the effects of increasing global challenges.

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A leading Indonesian producer has announced relatively stable domestic LLDPE film offers despite slashing allocations by 50%. Current offers stand only IDR20,000/ton ($1/ton) higher than in the previous week. This decision surprised market participants, who had anticipated a significant upward trend, especially after distributors firmed offers up by IDR390,000/ton in response to the reported quota cut.

Market participants attribute the decision to tepid demand, given ample on-hand stocks among converters and a supply glut in the wider market. Meanwhile, the oncoming Ramadan season might have done little to ease inventory pressures, as the usual seasonal uptick in purchasing activity remains absent in the PP and PE sectors.

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