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Morning Briefing - 20 May 2024Arbitrage traders were especially active, leveraging the healthy price gap of CNY100 – 200/ton between the Dalian Commodity Exchange and the spot ground. |
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CommoPlast
Morning Briefing
20 May 2024
Brent: $83.98 (+ $0.71)
WTI: $80.06（+ $0.83)
Naphtha CFR Japan: $677 (+ $11)
Ethylene CFR NEA: $855 (Stable)
Ethylene CFR SEA: $965 (- $15)
Propylene FOB Korea: $820 (+ $5)
Propylene CFR China: $850 (+ $5)
*Data represent closing prices of the previous trading day
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The Chinese PP and PE markets ended the trading week on 17 May 2024 on a strong note as futures contracts on the Dalian Commodity Exchange surged to multi-month highs on optimism over the property rescue package set by the government.
Arbitrage traders were especially active, leveraging the healthy price gap of CNY100 – 200/ton between the Dalian Commodity Exchange and the spot ground. How sustainable is this abrupt upswing, it remained to be seen. In the meantime, sellers are taking the opportunity to increase both local and export offers.
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Similarly, Asian market participants in the PVC sectors are monitoring closely the broad rescue package introduced by the Chinese government to halt property market turmoil in the country. Chinese PVC sellers have been facing heightened challenges in the export market over the past weeks due to the drastic surge in shipping costs. The rise in futures contracts on the Dalian Commodity Exchange, if persists, would ease some pressure on Chinese PVC sellers.
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