Morning Briefing - 05 August 2024
CommoPlast
Morning Briefing
05 August 2024
Brent: $76.81 (- $2.71)
WTI: $73.52 (- $2.79)
Naphtha CFR Japan: $675 (- $2)
Ethylene CFR NEA: $865 (+ $5)
Ethylene CFR SEA: $925 (Stable)
Propylene FOB Korea: $850 (Stable)
Propylene CFR China: $865 (Stable)
*Data represent closing prices of the previous trading day
……………………………………………………………….
The Chinese PVC market extended the weakening trend with carbide-based PVC hitting the lowest levels since April 2020 as market participants lose confidence in the near-term demand outlook.
The Chinese government held two major policy meetings in July - the Third Plenum from July 15-18 and the Central Committee meeting on July 30-31. Both meetings concluded without any substantial economic stimulus, further dampening market sentiment. The government's rejection of the $1 trillion housing rescue plan proposed by the IMF also dashed hopes for robust support for the property sector.
……………………………………………………………….
The Asian polyolefin market is currently grappling with the implications of a weakening US dollar, as industry players closely monitor currency exchange rates for potential pricing impacts. With the US dollar hitting a four-month low against a basket of major currencies, the market is rife with speculation.
Experts are predicting a significant shift in monetary policy, with the Federal Reserve expected to slash key interest rates by 0.75% to 1.0% in the latter half of the year. This anticipated rate cut has already exerted downward pressure on the greenback, stirring a ripple effect across global markets.
In response to the depreciating US dollar, several Chinese suppliers have swiftly adjusted their strategies. As of August 5, these suppliers have seized the opportunity to hike export offers. Sources are monitoring closely the responses from other sellers.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.