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Morning Briefing - 15 November 2024The Chinese PVC market remained on a downward trend this week despite a planned 2-trillion-yuan stimulus and recent tax incentives aimed at bolstering the property sector. Spot offers for both ethylene-based and carbide-based PVC declined by CNY 50-100/ton |
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CommoPlast
Morning Briefing
15 November 2024
Brent: $72.56 (+ $0.28)
WTI: $68.70 (+ $0.27)
Naphtha CFR Japan: - $6
Ethylene CFR NEA: Stable
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 PVC market remained on a downward trend this week despite a planned 2-trillion-yuan stimulus and recent tax incentives aimed at bolstering the property sector. Spot offers for both ethylene-based and carbide-based PVC declined by CNY 50-100/ton from the previous week, even as a weaker Yuan, which typically supports higher domestic prices, did little to halt the downtrend.
In an effort to gauge buyer reactions, a major domestic producer tested the market with carbide-based PVC set at CNY 5,100/ton, including VAT (equivalent to $625/ton, excluding VAT). Strong buyer feedback led the producer to pull back these offers, suggesting that the local PVC market may have reached a potential floor. However, sources caution that any rebound will likely be limited by persistently weak fundamentals.
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The Southeast Asian import PE market has begun to show signs of softening under downward pressure from continued currency depreciation and the availability of attractively priced US cargoes. On a positive note, buyers are showing increased interest in negotiations, spurred in part by a tighter ASEAN supply following recent plant shutdowns.
In Vietnam, buyers are actively participating in a bid collection campaign for US-sourced trader-packaging PE cargoes, priced at $915/ton for HDPE film and $960/ton for LLDPE film, on CIF terms. Meanwhile, buyers in Malaysia have expressed a willingness to procure US HDPE film at prices below the $900/ton mark.
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