Mar 29, 2024 6:43 a.m.

Morning Briefing - 19 October 2022

CommoPlast CommoPlast Asia Sdn Bhd
Morning Briefing - 19 October 2022
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CommoPlast

Morning Briefing

19 October 2022

 

Brent:  $90.03 (- $1.59

WTI: $82.82 (- $2.64)

 

Naphtha CFR Japan: $666 (+ $5)

 

Ethylene CFR NEA: $850 (Stable)

Ethylene CFR SEA: $880 (Stable)

 

Propylene FOB Korea: $865 (- $5)

Propylene CFR China: $895 (- $5)

 

*Data represent closing prices of the previous trading day

 

www.commoplast.com     

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A major Taiwanese producer did reduce November PVC offers, but by a whopping $70/ton to India and $50/ton to other markets – much larger than the initial expectations. The latest price cuts mark the seventh consecutive month of decline. Compared to the cyclical peak recorded in April, the list price from the producer has plunged 47% in Southeast Asia and 49% in India. Still, many customers think the market has yet to see the worst.

“With the US eyeing additional interest rate hikes in November and December, Asian currencies might depreciate further and pressure the US dollar-dominated cargoes,” a market source commented.

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The Chinese LLDPE film market is rife with competitive North American cargoes, which seem to have sufficiently compensated for the lack of supply from Middle Eastern producers. CommoPlast recorded deals for Canadian material at $920/ton CFR China and some special deals at slightly lower levels.

So far, a major Qatari maker has stepped back on import PE offers to China this week, considering the downward pressure from other origins and the protracted COVID-19 lockdown that dented the post-holiday demand. Bids started to emerge at the same price levels as Canadian and USA LLDPE film, though the supplier has yet to accept those prices.

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