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Morning Briefing - 22 Jan. 2025In an interesting development, Chinese PET bottle suppliers decided to lift export offers by $5/ton at the start of the week, citing support from the stronger upstream costs and reduced inventory pressure. The audacious pricing decision was in contrast to the continued softening trend observed on the domestic front. |
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CommoPlast
Morning Briefing
22 January 2025
Brent: $79.29 (- $0.86)
WTI: $75.89
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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In an interesting development, Chinese PET bottle suppliers decided to lift export offers by $5/ton at the start of the week, citing support from the stronger upstream costs and reduced inventory pressure. The audacious pricing decision was in contrast to the continued softening trend observed on the domestic front.
Market sources indicate that the Asian PET bottle market has reached an established acceptance threshold, which, combined with easing shipping costs, has enabled Chinese suppliers to revise their export prices upward. These adjustments are aimed at maintaining stability for transactions conducted on CIF/CFR terms.
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Trading activity in the Vietnamese homo-PP market experienced a sudden surge just days before the Lunar New Year holiday, driven by a $15/ton discount from a major South Korean producer compared to the previous month's levels. The updated price list was perceived as competitive, and, combined with a favourable exchange rate, it encouraged last-minute restocking among buyers. A satisfactory number of transactions for Chinese homo-PP were also reported.
Despite this uptick, market sentiment remained cautious, with participants anticipating further price reductions after the Tet holiday. Several buyers signalled an interest in securing larger volumes if Chinese and South Korean producers adjust their offers to the range of $900-920/ton CIF Vietnam in February.
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