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Morning Briefing - 22 November 2024The Chinese PET bottle market toppled after a brief upswing the previous week, plunging to the lowest point of 2024. CommoPlast indices show that offers have dropped by CNY50-150/ton as of November 22. The drop surprised market participants, some among whom had believed that the sector had hit a floor in late October |
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CommoPlast
Morning Briefing
22 November 2024
Brent: $74.12 (+ $1.42)
WTI: $70.10 (+ $1.35)
Naphtha CFR Japan: + $3
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
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The Chinese PET bottle market toppled after a brief upswing the previous week, plunging to the lowest point of 2024. CommoPlast indices show that offers have dropped by CNY50-150/ton as of November 22. The drop surprised market participants, some among whom had believed that the sector had hit a floor in late October and would remain supported by the yuan’s ongoing depreciation against the US dollar.
Hopes for a rebound faded amid the ongoing downtrend, compounded by the seasonal slowdown in bottled beverage sales as winter set in. However, a glimmer of hope emerged from the futures market. By mid-week, PX, PTA, and PET prices had strengthened on the Commodity Exchange, offering a modest boost to near-term optimism.
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The Asian propylene market has tumbled by an average of $27/ton since its cyclical peak in mid-October, reaching levels not seen since early January. Ample supply and sluggish global demand continue to exert downward pressure, tilting negotiation power decisively in favor of buyers. Many anticipate the current downtrend to persist through year-end, reflecting broader market pessimism.
The sustained decline in propylene prices has unsettled industry players, who had pinned their hopes on reduced operating rates and shutdowns at naphtha crackers to stabilize the market. The near-term outlook remains clouded, with participants cautiously watching for signs of a price floor.
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