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Morning Briefing - 09 October 2024The Chinese PP and PE markets experienced a notable increase in post-holiday restocking, as buyers resumed operations after the extended break. Optimism was driven primarily by speculation surrounding potential government economic stimulus measures aimed at bolstering demand through year-end. |
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CommoPlast
Morning Briefing
09 October 2024
Brent: $77.18 (- $3.75)
WTI: $73.57 (- $3.57)
Naphtha CFR Japan: - $5
Ethylene CFR NEA: + $20
Ethylene CFR SEA: + $10
Propylene FOB Korea: - $5
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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The Chinese PP and PE markets experienced a notable increase in post-holiday restocking, as buyers resumed operations after the extended break. Optimism was driven primarily by speculation surrounding potential government economic stimulus measures aimed at bolstering demand through year-end. Additionally, geopolitical concerns, particularly tensions in the Middle East, were perceived as potential threats to supply chains, further supporting expectations of price increases.
While a number of buyers agreed to the price hikes, securing cargoes to maintain safe inventory levels, others opted to limit transactions until clearer signals emerged from the Chinese government regarding any formal stimulus initiatives.
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In Indonesia, a major local trading house hiked PP and PE prices up by a sharp degree despite limited bullishness in the wider market. The response by the market was varied, with some calling the move justified in light of the IDR’s depreciation against the US dollar and others choosing to withhold judgment and monitor the situation.
Indonesian buyers, having largely secured sufficient quantities in the past week, have now adopted a wait-and-see approach. Many are assessing demand trends in China to better understand the potential impact on the Indonesian market in the near term. This measured stance highlights the prevailing market uncertainty.
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