Morning Briefing - 13 Jan. 2025
CommoPlast
Morning Briefing
13 January 2025
Brent: $79.76 (+ $2.84)
WTI: $76.57 (+ $2.65)
Naphtha CFR Japan: + $3
Ethylene CFR NEA: Stable
Ethylene CFR SEA: - $10
Propylene FOB Korea: + $20
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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The Chinese PVC market regained stabilisation in the week ending 10 January 2025, recovering slightly from historic lows recorded in the prior week. Transactions in the local and export markets improved slightly as buyers took advantage of the current attractive pricing. Still, cautiousness remained prevalent as buyers awaited final decisions on the anti-dumping duty in India and potential governmental support for the property market in China.
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Chinese domestic PE producer Inner Mongolia Baofeng III has taken a significant stride in its plans to expand its production capacities. At the end of the previous week, it launched the second HDPE/LLDPE swing unit with a nameplate annual capacity of 550,000 tons. This development followed stabilised production at Baofeng III’s first HDPE/LLDPE swing line (also with a nameplate annual capacity of 550,000 tons) toward the end of December 2024.
Market participants reacted pessimistically, viewing the move as intensifying concerns over a potentially amply supplied market. By late December 2024, pressure started to mount when several startups stabilised operations. Coupled with the arrival of previously purchased cargoes from the import marker, spot offers have come under considerable strain.
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