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Morning Briefing - 22 October 2024In stark contrast to the firming trend in the import market across China and Southeast Asia, the PE market in India continues to dwindle ahead of the Diwali Festival, raising concerns about the strength of local demand. A major local producer has responded with a fresh discount scheme |
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CommoPlast
Morning Briefing
22 October 2024
Brent: $74.29 (+ $1.23)
WTI: $70.56 (+ $1.34)
Naphtha CFR Japan: - $1
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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At least two key Middle Eastern producers have opened November PE shipment offers to Vietnam with a predictable, yet questionable, hike of $30/ton on LLDPE film and $10-40/ton on HDPE film. While these increases were expected, they come at a time when the Vietnamese market is facing significant challenges, including a weakening Dong against the US dollar, which adds further strain on importers and local buyers.
The ongoing negotiations indicate hesitation. Despite the push from producers, buying ideas remained conservative, ranging between $980-1010/ton for LLDPE film and $970-980/ton for HDPE film, suggesting that buyers may not be willing to absorb the full extent of the price hikes.
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In stark contrast to the firming trend in the import market across China and Southeast Asia, the PE market in India continues to dwindle ahead of the Diwali Festival, raising concerns about the strength of local demand. A major local producer has responded with a fresh discount scheme of INR 1500 – 3000/ton ($18 – 36/ton), based on grades and contractual obligations.
Sources are watching closely the sustainability of the uptrend in China and Southeast Asia and the state of demand to gauge the market outlook in India in November.
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