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Morning Briefing - 25 October 2022

CommoPlast CommoPlast Asia Sdn Bhd
Morning Briefing - 25 October 2022
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Morning Briefing

25 October 2022

 

Brent:  $93.26 (- $0.24

WTI: $84.58 (- $0.47)

 

Naphtha CFR Japan: Holiday

 

Ethylene CFR NEA: Holiday

Ethylene CFR SEA: Holiday

 

Propylene FOB Korea: Holiday

Propylene CFR China: Holiday

 

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Overseas market participants were monitoring the state of demand in China as the National Congress Meeting concluded over the weekend. Apparently, there are no good news to support either a strong or sustainable rebound. 

Despite the stronger-than-expected GDP data in September, buyers here focused on a different set of data to gauge the near-term outlook: the weaker export growth and retail sales, highlighting the weight of slow overseas demand while consumers braced for more lockdowns at home.

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In Southeast Asia, more international suppliers started to open November PE offers with reductions, taking into account the rapid depreciation of the local currencies against the US dollar.

A key Saudi Arabia producer lowers offers to Indonesia and Vietnam by $10-20/ton, to $1020-1030/ton for HDPE film and $1050-1060/ton for LLDPE film, all based on CIF terms.

Bids started to emerge at $970-980/ton for LLDPE film and $950-960/ton for HDPE film, all based on CIF Vietnam terms.

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In statistics news, the total PP and PE import to China recovered for the second month in a row in September, hitting 1.704 million tons – the highest levels since March this year, according to data from the Chinese Customs Department.

Data showed that PP registered a much stronger rebound during the reported month, rising 37.7% from August while PE rose just 4.1%. The higher supply for PP has been fully reflected in the spot PP prices over the past weeks, and at the time of this report, Chinese market participants expect import offers for dutiable origins to breach below the $900/ton mark in the next several weeks. 

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