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Morning Briefing - 20 August 2024Over the past week, the Rupiah appreciated by about 5% against the US dollar, driven by expectations of the Federal Reserve lowering key interest rates in September. A stronger local currency typically leads to a drop in commodity prices traded in that currency. |
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CommoPlast
Morning Briefing
20 August 2024
Brent: $77.66 (- $2.02)
WTI: $74.37 (- $2.28)
Naphtha CFR Japan: - $9
Ethylene CFR NEA: + $5
Ethylene CFR SEA: + $45
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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The Indonesian PP and PE market resumed falling after a major local producer decided to slash weekly offers drastically despite a shortage of ready-stock cargo and ongoing production disruptions. The aggressive pricing decision was driven by the strengthened Rupiah against the US dollar.
Over the past week, the Rupiah appreciated by about 5% against the US dollar, driven by expectations of the Federal Reserve lowering key interest rates in September. A stronger local currency typically leads to a drop in commodity prices traded in that currency.
Buyers maintain a cautious approach in anticipation of further reductions ahead.
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A major Taiwanese producer might postpone the September PVC prices announcement to next week – much later than usual to gain better insight into the government's decision on the implementation of the Indian Standard (BIS). Market participants project $70-80/ton reductions on the new offers. Last month, the producer opened their price list at $910/ton CIF India.
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