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Morning Briefing - 23 August 2024In Indonesia, a couple of Asian suppliers attempted to raise import homo-PP offers by $20/ton from earlier this week, justifying the increase with the need to offset the weakened US dollar and reduced inventory pressure. |
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CommoPlast
Morning Briefing
23 August 2024
Brent: $77.22 (+ $1.17)
WTI: $73.01 (+ $1.08)
Naphtha CFR Japan: - $5
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: - $12
Propylene CFR China: - $12
*Data represent closing prices of the previous trading day
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The Chinese PET bottle market extended the weakening trend, weighed down by sluggish demand, declining upstream costs, and unfavorable currency fluctuations. Market sentiment remains bleak as the sector braces for the off-peak season, with no immediate signs of recovery.
The domestic spot market has been galloping lower for six consecutive weeks, yet buyers believed that further discounts were possible in the near-term.
Export PET bottle offers fell to $875 – 880/ton FOB China with limited number of transactions reported.
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In Indonesia, a couple of Asian suppliers attempted to raise import homo-PP offers by $20/ton from earlier this week, justifying the increase with the need to offset the weakened US dollar and reduced inventory pressure. However, the market's initial response was notably lackluster, underscoring significant buyer resistance to prices exceeding the $1000/ton threshold on CIF terms.
Market participants are warily watching the operating rates at Malaysia’s PrefChem and Vietnam’s Long Son Petrochemical, as any fluctuations in output could impact the already volatile market.
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