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CommoPlast

Morning Briefing

02 December 2024

Brent: $72.94 (- $0.34)

WTI: $68.00 

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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Trading activities in the Chinese export PP market experienced an unexpected downturn due to heightened shipping costs. The $13-15/ton increase in freight rates over the past week eroded interest notably from Southeast Asia, where limitations in supply had initially driven a wave of demand for Chinese material. 

This development disappointed suppliers, initially keen on alleviating anticipated sales pressures through the Southeast Asian export window. Concerns over ample domestic supply are mounting, fueled by the anticipated launch of new production facilities in late 2024 and early 2025, alongside reports that monthly domestic PP output surged past 3 million tons in October.

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A major Chinese PET producer has been stung by a sharp increase in anti-dumping duties (ADD) imposed by the Indian government. The revised ADD at $40.41/ton, up from $15.54/ton in 2021, follows an investigation revealing that the supplier had dumped resins into India at prices significantly below local offers, reportedly undercutting demand for domestic materials. The higher duties are expected to further dampen China’s PET export activities, already strained by similar measures from other nations, such as South Korea in 2024.

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Country
China 

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