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CommoPlast

Morning Briefing

17 December 2024

Brent: $73.91 (- $0.58)

WTI: $70.71 (- $0.58)

Naphtha CFR Japan: + $1

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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A surge in purchasing activities in the previous week effectively reverted the nine consecutive declining trends in the Chinese PET bottle market. According to CommoPlast data, domestic spot prices rose by CNY 200/ton ($27/ton) at the start of the new week, supported by reduced inventory pressure, a weaker Yuan, and increases in PTA and PX futures.

Optimism also extended to the export market, where offers on the lower end climbed by $20/ton, reversing recent 2024 lows. The export sector gained additional momentum from softer freight rates, leading to successful deals for February shipments to Southeast Asia.

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The Chinese homo-PP market is preparing for production disruptions in early 2024, with eight facilities set to undergo maintenance shutdowns from late January to March. The expected production loss for the quarter is estimated at 110,424 tons, averaging around 37,474 tons per month.

However, the extent to which this supply constraint will support the overall homo-PP market remains uncertain. A counterbalancing factor could potentially emerge from the scheduled startup of PP facilities between 4Q2024 and 1Q2025. However, the degree of consequent downward pressure will largely depend on whether these plants can achieve stable production by early 2025.

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Country
Vietnam 

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