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Morning Briefing - 23 Jan. 2025The Chinese PVC market maintained its upward trajectory this week, despite a noticeable decline in local trading sentiment driven by reduced downstream activity ahead of the Lunar New Year holiday. Key suppliers raised export offers by $15/ton compared to the previous week |
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CommoPlast
Morning Briefing
23 January 2025
Brent: $79.00 (- $0.29)
WTI: $75.44 (- $0.39)
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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After much hesitation and resistance, Vietnamese buyers reluctantly conceded to higher import LLDPE film prices this week, even as the Chinese market continues to experience a pronounced price correction. A tightening supply outlook, exacerbated by multiple production disruptions in the Middle East, has amplified concerns over potential shortages in the coming months, prompting the recent wave of purchasing activity.
Import LLDPE film offers to Vietnam have now surged to their highest levels since mid-October 2024, averaging $1,015/ton on a CIF basis.
As reported earlier, several LLDPE production units in the Middle East have faced technical setbacks in recent weeks. While buyers in Vietnam were informed that restart schedules remain unclear, the severity of these disruptions could not be independently verified by CommoPlast.
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The Chinese PVC market maintained its upward trajectory this week, despite a noticeable decline in local trading sentiment driven by reduced downstream activity ahead of the Lunar New Year holiday. Key suppliers raised export offers by $15/ton compared to the previous week, attributing the increase to reduced inventory pressure supported by steady demand from Indian buyers.
In contrast, Southeast Asian buyers exhibited caution, refraining from engaging with the price rebound amid concerns over its sustainability in early February. A potential inventory buildup during the weeklong Spring Festival, coupled with escalating China-US trade tensions, is likely to curb further gains, prompting a conservative stance on the market’s near-term outlook.
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Vietnam
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