|
|
Morning Briefing - 03 December 2024Although no official explanation was provided for the supply drop, market speculation pointed to potential production issues at the producer's facility. Reports indicate that spot LLDPE film in the distribution market is now priced at IDR 390,000/ton higher than the producer's official price list. |
|
CommoPlast
Morning Briefing
03 December 2024
Brent: $71.83 (- $0.01)
WTI: $68.77 (+ $0.10)
Naphtha CFR Japan: - $5
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
_
Hopes for improved PP supply conditions in Southeast Asia were dashed after operational setbacks at Malaysia’s PrefChem facility. Despite reports of both PP production lines—boasting a combined nameplate capacity of 900,000 tons/year—restarting, the producer has struggled to achieve stable run rates. According to industry insiders, one of the PP lines has been shut down again, while the other operates below optimal capacity.
In the meantime, the regional homo-PP market remains in a stalemate as suppliers latched on to the limited availability of ASEAN cargoes and strong shipping costs to keep offers firm while buyers showed limited interest in pursuing fresh purchases.
____________________________________________________________________
A major Indonesian producer opted to keep weekly spot PP and PE offers largely stable compared to the previous price announcement. However, distributors in the country swiftly raised LLDPE film prices following a sharp 50% reduction in December contract allocations.
Although no official explanation was provided for the supply drop, market speculation pointed to potential production issues at the producer's facility. Reports indicate that spot LLDPE film in the distribution market is now priced at IDR 390,000/ton higher than the producer's official price list.
The price hikes have elicited mixed reactions from buyers. While some market participants view the increases as justified due to the supply crunch, others question their sustainability amid ongoing weak demand conditions.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Country
South Korea
About CommoPlast Asia Sdn Bhd
Your empowering market insight site.
