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CommoPlast

Morning Briefing

24 October 2024

Brent: $74.96 (- $1.08)

WTI: $70.77 (- $0.97)

Naphtha CFR Japan: + $16

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: + $5

Propylene CFR China: + $5

*Data represent closing prices of the previous trading day 

www.commoplast.com     

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Midweek trading sentiment in China's PP, HDPE, and LLDPE markets improved, supported by a rebound in futures contracts on the Dalian Commodity Exchange. Despite this recovery, demand for LDPE film remained lackluster, even after a fresh price reduction of CNY 50-100/ton.

The muted response from buyers is primarily due to an anticipated increase in domestic LDPE supply. Recent production switches and the planned start-up of new facilities have eased earlier concerns about supply disruptions, which had driven LDPE prices to a 27-month high amid geopolitical tensions in the Middle East.

According to data from CommoPlast, the local LDPE film market in China has experienced price corrections for two consecutive weeks

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In Southeast Asia, key Saudi Arabian producers have finalized November PE shipment prices with only modest discounts from the initial price lists. Responses were healthy, particularly toward LLDPE film cargoes.

In Indonesia, concerns persist over the reduced availability of LLDPE film from key suppliers in Vietnam, Malaysia, and Thailand, driven by recent production disruptions. Meanwhile, other suppliers have prioritized shipments to China, where higher netbacks present more favorable profit margins, further restricting supply to Southeast Asia.

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