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Morning Briefing - 14 October 2024This surge in buying activity could potentially spill over into the Southeast Asian market, raising expectations that international suppliers may adopt a firmer pricing stance for November shipments. Nevertheless, the sustainability of this uptick remains uncertain, with key market players likely to weigh the impact of the Chinese government’s fresh economic stimulus. |
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CommoPlast
Morning Briefing
14 October 2024
Brent: $79.04 (- $0.36)
WTI: $75.56 (- $0.29)
Naphtha CFR Japan: + $9
Ethylene CFR NEA: - $5
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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A major Taiwanese PVC producer is set to announce its November shipment offers to Asia on Tuesday, 15 October 2024. Market participants remain divided over potential pricing trends, with expectations varying across regions.
Chinese sellers are projecting a possible $30-50/ton increase, attributing this to rising shipping costs and optimism linked to the Chinese property sector. However, this bullish stance contrasts sharply with the views of Indian buyers, who have rejected the idea of price hikes. Indian market conditions remain stable, with local supply sufficiently meeting demand, which has yet to recover fully from the seasonal monsoon slowdown.
Moreover, downward pressure in India is intensifying, as a leading domestic PVC producer cut local prices by INR 2,000/ton earlier this month. This move could influence broader market dynamics in the region, challenging any upward pricing momentum.
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Trading activity in the domestic Chinese PP and PE market came to a virtual halt on the last trading day of the week, as participants awaited the outcome of the pivotal 12 October meeting. However, import markets saw sustained buyer interest, with significant transactions recorded, particularly in LLDPE and several HDPE grades.
This surge in buying activity could potentially spill over into the Southeast Asian market, raising expectations that international suppliers may adopt a firmer pricing stance for November shipments. Nevertheless, the sustainability of this uptick remains uncertain, with key market players likely to weigh the impact of the Chinese government’s fresh economic stimulus.
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