CommoPlast

Morning Briefing - 20 September 2024

Following the larger-than-expected key interest rate cut from the US Federal Reserve, trading sentiment in the local PP and PE market in China improved sharply. Converters in the country also reported a visible uptick in new orders from end-product buyers.


CommoPlast

Morning Briefing

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20 September 2024

 

Brent: $74.88 (+ $1.23)

WTI: $71.95 (+ $1.04

 

Naphtha CFR Japan: + $8

 

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 

 

www.commoplast.com     

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Following the larger-than-expected key interest rate cut from the US Federal Reserve, trading sentiment in the local PP and PE market in China improved sharply. Converters in the country also reported a visible uptick in new orders from end-product buyers.

A good number of transactions have been concluded at stable prices day-on-day, and limited availability for LLDPE and LDPE film even drove some sellers to temporarily suspend offerings to assess the market direction.

While these bullish developments have strengthened confidence in pre-National Day replenishment, Chinese suppliers remain hesitant to implement any meaningful price hikes, signaling continued caution in the market.

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With a key Taiwanese producer delaying the announcement of October PVC prices until next week, speculation is rife in the Asian market regarding potential pricing trends. Sources indicate that weak demand in China and India has diminished the likelihood of any price increases. Meanwhile, aggressive Chinese sellers have reduced export offers in an effort to close deals before the weeklong National Day holiday, reinforcing expectations of a softer outlook for October.

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