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Morning Briefing - 21 November 2024Trading activity in China’s PE import market has gained momentum, spurred by sharp price cuts over the week. LDPE offers have been particularly under pressure, with a major Thai producer slashing $75/ton off previous offers to offset burdens posed by the Yuan’s depreciation. |
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CommoPlast
Morning Briefing
21 November 2024
Brent: $72.81 (- $0.50)
WTI: $68.87 (- $0.52)
Naphtha CFR Japan: + $10
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: - $10
*Data represent closing prices of the previous trading day
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Indonesia’s local homo-PP market climbed to levels not seen since July and August, escalated by concerns over availability constraints across Southeast Asia. In addition to projected and ongoing shutdowns in Thailand, Vietnam, and the Philippines, a major Malaysian producer had recently opted to shutter its PP plant for the rest of the quarter.
Tense trading is anticipated to persist in the near term as purchasers, constrained by sluggish downstream demand, push back against the firmer offers. However, the landscape may change as Ramadan looms close, potentially drawing converters back into the market to meet an anticipated increase in demand for food packaging.
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Trading activity in China’s PE import market has gained momentum, spurred by sharp price cuts over the week. LDPE offers have been particularly under pressure, with a major Thai producer slashing $75/ton off previous offers to offset burdens posed by the Yuan’s depreciation. The attractive discount was reported to have whetted a fair degree of purchasing appetite, reflected in a good number of deals.
Other international LDPE suppliers have followed suit, with Qatari LDPE film plunging $30/ton week-on-week, which, expectedly, drew satisfactory buying interest. These adjustments underscore the efforts of global sellers to regain competitiveness in the Chinese market, where buyers have increasingly turned to domestic suppliers to mitigate exchange rate risks.
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