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Morning Briefing - 09 July 2024Local traders and international suppliers are expected to soon feel the impact of these drastic price cuts. Meanwhile, buyers are likely to adopt a wait-and-see approach, withdrawing to the sidelines until the market stabilizes. |
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CommoPlast
Morning Briefing
09 July 2024
Brent: $85.75 (- $0.79)
WTI: $82.33 (- $0.83)
Naphtha CFR Japan: -$7
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: +$10
Propylene CFR China: +$3
*Data represent closing prices of the previous trading day
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As the week started, the Indonesian PP and PE markets were taken aback by a significant price announcement from a major local producer, indicating substantial decreases. This marks the second consecutive week in which the producer has aggressively reduced spot prices, driven by an improving supply outlook and sluggish demand conditions.
Local traders and international suppliers are expected to soon feel the impact of these drastic price cuts. Meanwhile, buyers are likely to adopt a wait-and-see approach, withdrawing to the sidelines until the market stabilizes.
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In China, the local market downtrend persisted, driven by the continued decline in key contracts on the Dalian Commodity Exchange. The initial optimism surrounding the upcoming Third Plenary Session has faded, causing market participants to shift their focus to immediate supply-demand dynamics.
Despite the consistently softer local market, Chinese suppliers have opted to keep export PP offers stable from the previous week. However, high freight rates have significantly undermined the competitiveness of Chinese cargoes in the international market.
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Written and edited: Rochelle Nguyen
Country
China
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