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Morning Briefing - 17 October 2024Several major international suppliers reportedly lifted import PE offers to China by $5-10/ton on HDPE film, $25/ton on LLDPE film, and $15/ton on LDPE film on the back of tighter availability and bullish expectations on the near-term demand outlook. |
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CommoPlast
Morning Briefing
17 October 2024
Brent: $74.22 (- $0.03)
WTI: $70.39 (- $0.19)
Naphtha CFR Japan: - $7
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Several major international suppliers reportedly lifted import PE offers to China by $5-10/ton on HDPE film, $25/ton on LLDPE film, and $15/ton on LDPE film on the back of tighter availability and bullish expectations on the near-term demand outlook. Apparently, the availability of LLDPE film remained relatively limited, bolstering the potential for further increases in the days ahead.
However, ongoing pricing negotiations are facing challenges. The recent depreciation of the Yuan—dropping 1.4% since early October to 7.11 against the US dollar as of October 16—has made buyers increasingly cautious.
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In Indonesia, import homo-PP offers from non-dutiable origins rose by $15-20/ton compared to the previous week, driven by concerns over the reduced availability stemming from several production disruptions in Thailand and Vietnam. Responses from the market were lukewarm.
From the perspective of converters, the proposed price increases may undermine demand, as raising end-product prices to meet these higher costs risks eroding customer interest. Additionally, the depreciation of the Indonesian Rupiah further weakens the appeal of imports. According to Oanda data, the Rupiah has depreciated by 2.77% since the beginning of October, exacerbating the cost pressures faced by local buyers.
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