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Morning Briefing - 11 November 2024However, the absence of a significant economic stimulus from the Chinese government has left Asia's PP and PE markets facing renewed concerns. Market participants warn of a possible downward trend driven by a lack of aggressive growth policies. |
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CommoPlast
Morning Briefing
11 November 2024
Brent: $73.10 (- $1.76)
WTI: $69.49 (- $1.98)
Naphtha CFR Japan: - $6
Ethylene CFR NEA: + $15
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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The Chinese PE spot market closed the week on a firmer note, buoyed by expectations of reduced import arrivals and sustained seasonal demand for agricultural film. Additionally, reports of traders largely depleting their on-hand LLDPE stocks have fueled anticipations of higher short-term demand.
However, market participants remain cautious about longer-term factors that could limit price increases for the rest of the quarter. With most orders for packaging materials for November 11 sales already concluded and demand for agricultural film starting to taper off, players are questioning the strength of demand heading into the year-end.
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In the wake of the recent US presidential election, the Federal Reserve's decision to trim key interest rates by 0.25%, and China’s $1.4 trillion debt swap, the Asian polyolefin markets have shown limited reaction. Buyers have adopted a cautious stance while assessing the implications of these events on the near-term outlook.
However, the absence of a significant economic stimulus from the Chinese government has left Asia's PP and PE markets facing renewed concerns. Market participants warn of a possible downward trend driven by a lack of aggressive growth policies. This could dampen sentiment on the Dalian Commodity Exchange’s futures contracts this week and, in turn, pressure spot trading.
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