Morning Briefing - 10 March 2022
CommoPlast
Morning Briefing
10 March 2022
Brent: $111.14 (- $16.84）
WTI: $108.70 (- $15.00）
Naphtha CFR Japan: $1165.5 (+ $33.1)
Ethylene CFR NEA: $1360 (+ $50)
Ethylene CFR SEA: $1360 (+ $50)
Propylene FOB Korea: $1305 (+ $10)
Propylene CFR China: $1275 (+ $25)
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International benchmarks for crude oil shank on Wednesday, 9 March 2022 as the United Arab Emirates called on OPEC+ to increase production outputs faster while Ukraine said it is willing to consider some compromises to end the war with Russia. Industry experts said the energy market might continue to come down if diplomacy wins out in the next few weeks.
Chinese players expect negative impacts on the Dalian Commodity Exchange this morning.
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A chaotic scene was observed in the Southeast Asian PE market in the previous session when Indonesian buyers reported having received spot offers for Philippines LLDPE film at $1880/ton CIF terms. The buyer said there was no error in the offers except it is not a level anyone in Indonesia could accept at the moment. In addition, Vietnamese traders informed of having received inquiries for re-export HDPE and LLDPE film cargoes from Thailand buyers at “good levels”.
Asian naphtha-based producers are under tremendous costs pressure. According to a regional maker, selling HDPE and LLDPE film below the $1700/ton mark would result in negative profit margins. Hence, the choices are clear: either lifting offers to cover the costs or reducing operating rates substantially.
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