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Morning Briefing - 25 July 2023The Chinese PP and PE market showed a visible slowdown on the first trading day of the week as both sellers and buyers prefer to wait on the sidelines for a clearer market direction with the China Economic Work Conference taking place this week. |
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CommoPlast
Morning Briefing
25 July 2023
Brent: $82.74 (+ $1.67)
WTI: $78.47 (+ $1.67)
Naphtha CFR Japan: $603 (+ $2)
Ethylene CFR NEA: $770 (Stable)
Ethylene CFR SEA: $745 (Stable)
Propylene FOB Korea: $735 (Stable)
Propylene CFR China: $780 (Stable)
*Data represent closing prices of the previous trading day
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The Chinese PP and PE market showed a visible slowdown on the first trading day of the week as both sellers and buyers prefer to wait on the sidelines for a clearer market direction with the China Economic Work Conference taking place this week.
Nevertheless, the lack of inventory pressure encouraged domestic producers to maintain a firm stance on spot cargoes regardless of the dwindling real transactions. Data from CommoPlast showed that total stock housed by Sinopec and CNPC stood at 665,000 tons on 24 July – much lower than the psychological threshold of 800,000 tons.
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Vietnamese buyers started receiving August PE shipments from at least two other major Saudi Arabia producers on the first trading day of the week. Limited HDPE film supply lead these two sellers to open new offers above the $1000/ton threshold, at $1020 – 1050/ton CIF Vietnam.
“There might not be any major discounts on HDPE film cargoes this month. We were informed that the supply tightness condition might persist in the next two to three months. In the meantime, our buying ideas for LLDPE film are around $950/ton,” said, a buyer.
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