Morning Briefing - 18 October 2022
CommoPlast
Morning Briefing
18 October 2022
Brent: $91.62 (- $0.01）
WTI: $85.46 (- $0.15)
Naphtha CFR Japan: $662 (- $9)
Ethylene CFR NEA: $850 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $870 (Stable)
Propylene CFR China: $900 (Stable)
……………………………………………………………….
It is that time of the month when Asian market participants anxiously await new PVC offers from a major Taiwanese producer. For the November price outlook, at the moment, players are torn between the sharp depreciation of Asian currencies against the US dollar and the preliminary signs of an uptick in demand in India and China.
“There might be a $20-30/ton reduction to reflect the currency exchange issue, but we do not expect any drastic movement since most Asian PVC producers are facing thin profit margins,” a Southeast Asian trader added.
……………………………………………………………….
The domestic homo-PP market in China extended the weakening trend this week on growing concerns over the demand outlook. Market participants are anxiously waiting for the government to announce additional stimulus packages to boost year-end consumption, but so far, the focus of the National Congress is on security.
From the supply side, at least nine Chinese PP plants with a combined capacity of 2.4 million tons/year have restarted production since late September from the previous shutdown. Besides, CNPC Guangdong Petrochemical (or Jieyang Refinery) successfully started up and achieved on-spec cargoes at the newly constructed 500,000 tons/year PP unit in Guangdong. Higher supply amid dwindling demand is not a good combination to support a firmer trend.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your Empowering Market Insight Site.