Morning Briefing - 04 September 2024
CommoPlast
Morning Briefing
04 September 2024
Brent: $73.75 (- $3.77)
WTI: $70.34
Naphtha CFR Japan: +$7
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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An aggressive attempt to sharply increase PP and PE prices late last week has backfired for a major Indonesian trading house, as rising market resistance forced the supplier to scale back its price hike targets, highlighting the market's limited capacity to absorb substantial increases at this time.
Despite these downward adjustments, current price levels still indicate marginal gains. CommoPlast data reveals that HDPE and LLDPE film prices remain approximately IDR 500,000/ton above the cyclical lows recorded in mid-August.
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The Chinese PET bottle market has come under significant downward pressure in the days following the commencement of trading on the Zhengzhou Commodity Exchange (ZCE). An influx of supply, driven by the completion of several maintenance shutdowns and the startup of a new 600,000 tons/year plant in Southern China, has prompted buyers to curb their purchasing activities. As a result, the domestic spot market has registered a sharp decline of CNY 150–250 per ton compared to the previous week, while export prices have dropped by $20–30 per ton.
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