Morning Briefing - 27 December 2024

CommoPlast

Morning Briefing

27 December 2024

Brent: $73.26 (- $0.32)

WTI: $69.62 (- $0.48)

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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In a decision broadly anticipated by market stakeholders, the Indian government has announced a six-month postponement of the Quality Control Order (QCO) for PP and PVC, marking the second deferral since the initiative's inception. The revised implementation date for the mandate is now set for June 24, 2025.

With this deferment providing temporary clarity, market participants are now turning their attention to the pending resolution on anti-dumping duties (ADD) for PVC imports from seven countries. The outcome is expected to have significant implications for the domestic market dynamics in the months ahead.

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The export PET bottle market in China plummeted to 2024’s new low, effectively halting the three-week rally. The latest price lists indicated a $10-30/ton fall in export offers, driven by renewed concerns over the rising supply outlook, subdued trading activity during the holiday season, and the currency exchange rates.

Adding to the supply pressure, two new PET bottle plants in China, with a combined annual production capacity of 1.25 million tons, are scheduled to commence commercial operations in the first quarter of 2025. Additionally, two other plants, yet to confirm their startup timelines, are projected to contribute an additional 900,000 tons/year upon becoming operational.

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