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Morning Briefing - 28 November 2024At least two major Saudi producers concluded December PE shipment in Vietnam with $30-40/ton reductions from the initial offers. While concessions had initially been expected, market participants were surprised at the steepness of the cuts—especially for the LLDPE grade. |
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CommoPlast
Morning Briefing
28 November 2024
Brent: $72.83 (+ $0.02)
WTI: $68.72 (- $0.05)
Naphtha CFR Japan: - $5
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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At least two major Saudi producers concluded December PE shipment in Vietnam with $30-40/ton reductions from the initial offers. While concessions had initially been expected, market participants were surprised at the steepness of the cuts—especially for the LLDPE grade. Rising upstream costs and strong seasonal demand from China’s agricultural film sector had initially been anticipated to provide upward support to the Southeast Asian PE sector, but did not materialize.
Market participants now consider that an influx of US HDPE and the Dong’s depreciation may have weighed upon the market more heavily than initially anticipated. Speculation has also arisen that Saudi producers may have faced pressure to destock ahead of the year-end financial closing.
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The Chinese PP export market has stabilised after weeks of decline, buoyed by an uptick in demand from Southeast Asia. A series of production shutdowns in the latter region has driven a tide of customers in search of Chinese supply, particularly from the Philippines and Thailand.
This development came as a relief to Chinese suppliers, who had been eager to offload inventories in anticipation of increased domestic supply in early 2025. Acting quickly, exporters aim to take full advantage of the current export window before Southeast Asian plants return to operation.
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