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Morning Briefing - 27 August 2024Vietnamese buyers are particularly concerned about the potential impact of the recent start-up at the Long Son Petrochemical plant, which could increase local supply and exert additional downward pressure on prices. Market participants are closely watching the producer’s export activities to better understand the near-term outlook. |
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CommoPlast
Morning Briefing
27 August 2024
Brent: $81.43 (+ $2.41)
WTI: $77.42 (+ $2.59)
Naphtha CFR Japan: + $13
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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At least two major Saudi Arabian producers have opened September PE shipment offers to Vietnam with large reductions compared to August, reflecting the ongoing downtrend across the region. Despite the sharp cuts, the market response has been tepid, with several buyers submitting counteroffers well below the producer's initial price list.
Vietnamese buyers are particularly concerned about the potential impact of the recent start-up at the Long Son Petrochemical plant, which could increase local supply and exert additional downward pressure on prices. Market participants are closely watching the producer’s export activities to better understand the near-term outlook. Meanwhile, buying ideas for Saudi HDPE film have surfaced below the $950/ton mark, and LLDPE film offers are ranging between $960-980/ton CIF Vietnam.
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The Chinese homo-PP market remained unexpectedly resilient despite an increase in local supply due to the restart of several domestic PP plants after maintenance shutdowns. Spot offers continued to rise, driven by steady weekly purchases from buyers seeking to meet immediate production needs.
Converters in the BOPP film/sheet sector reported a noticeable uptick in end-product demand, fostering bullish expectations for September as the manufacturing season gains momentum.
Meanwhile, several Chinese PP suppliers decided to raise export offers by $10-20/ton to align with the strong domestic market. These price hikes are encountering significant resistance from overseas buyers, casting uncertainty over the viability of sustained export demand.
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