Morning Briefing - 11 October 2022
CommoPlast
Morning Briefing
11 October 2022
Brent: $96.19 (- $1.73）
WTI: $91.13 (- $1.51)
Naphtha CFR Japan: $698 (+ $2)
Ethylene CFR NEA: $830 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $865 (Stable)
Propylene CFR China: $900 (+ $5)
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Officially returned to their desks on Monday, 10 October 2022, Chinese buyers portrayed a rather healthy buying interest for LLDPE film cargoes, both locally and from imports.
New offers were largely stable from the pre-holiday period, but acceptance has definitely improved. In fact, transactions for Saudi Arabia LLDPE film have reached at $1000/ton CFR China, a $30-40/ton higher than the previous deals.
On the other hand, there are still discussions in the market that the upbeat sentiment might not last, especially with the flare-up of COVID-19 infection cases in the Northern region that potentially dent demand.
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In the PVC sector, a number of carbide-based PVC plants in Northern China and the Inner Mongolia region started to face difficulties to move or receive cargoes as the local government implemented containment measures to curb the flare-up in the number of COVID-19 infection cases following the weeklong National Day holiday.
Delivery disruption and substantial operating rate cuts are expected to affect availability in other regions within China, at least in the next one to two weeks.
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In Indonesia, a major local producer decided to slash spot PP offers sharply to counter the persistently sluggish demand condition and the softer import market. The latest price list saw an IDR670,000/ton ($44/ton) reduction on both homo-PP yarn and injection compared to the previous week. Sources said that prices in the distribution market remain more competitive and given the soft end-product businesses, there is no rush in proceeding with new purchases at the moment.
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