Morning Briefing - 21 October 2022
CommoPlast
Morning Briefing
21 October 2022
Brent: $92.38 (- $0.03）
WTI: $85.98 (+ $0.43)
Naphtha CFR Japan: $677 (+ $21)
Ethylene CFR NEA: $870 (+ $20)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $855 (- $5)
Propylene CFR China: $885 (- $5)
*Data represent closing prices of the previous trading day
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While there is no denying that the Chinese homo-PP market has been facing stiffening downward pressure since earlier this month, the new price list from a key Indian producer just sent the entire import market to a new low. For the first time in 2022, import homo-PP yarn based on CFR China touches the $900/ton mark, and potentially breaches below.
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As Indian market players started leaving for the Diwali holiday, purchasing activities for PVC following the November price announcement were subdued. There are discussions that demand could pick up in the coming week in preparation for the traditionally high-demand season that usually begins in November.
In Malaysia, there have been reports that deals for ASEAN-origin PVC have been reached at $760/ton CIF terms in the mainstream market, a $40/ton below the initial price list, marking a total reduction of $90/ton from the last month’s offer. Transactions are thinner than expected. End-product businesses have not shown major improvement amid the political turmoil. The rapidly depreciating Ringgit further erode buying appetite.
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