Morning Briefing - 20 October 2022
CommoPlast
Morning Briefing
20 October 2022
Brent: $85.55 (+ $2.73）
WTI: $92.41 (+ $2.38)
Naphtha CFR Japan: $656 (- $10)
Ethylene CFR NEA: $850 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $860 (- $5)
Propylene CFR China: $890 (- $5)
……………………………………………………………….
Vietnam's domestic PP and PE market took a sharper downturn on Wednesday, 19 October 2022 on mounting pressure from higher interest rates, tightening cashflow, and persistently weak demand conditions.
Local traders are shouldering double losses: the decline in selling price and the exchange rates, which significantly erode buying appetite for imported materials.
Several bids for import homo-PP from various origins emerged at $950-960/ton CIF Vietnam without any conclusions. Speaking to CommoPlast, a number of market participants here prefer to minimise new purchases, especially the US dollar-dominated cargoes, to protect the cash-flow in anticipation of further deteriorating market conditions ahead.
……………………………………………………………….
In China, market participants are digesting President Xi’s ‘Make China Great Again’ five-year plan, which many experts deemed ultra-nationalism and might ‘close China off to global trade.”
Buying activities are weak while prices on Dalian Commodity Exchange and the spot market gallop lower for the third day this week.
Compared to the PE market, Chinese suppliers are obviously more concerned about PP. Export and re-export offers from several sellers for yarn cargoes fell to $1010-1020/ton CIF Southeast Asia compared to $1030-1060/ton earlier this week.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your Empowering Market Insight Site.