Morning Briefing - 27 October 2022
CommoPlast
Morning Briefing
27 October 2022
Brent: $95.69 (+ $2.17）
WTI: $87.91 (+ $2.59）
Naphtha CFR Japan: $680 (+$4)
Ethylene CFR NEA: $870 (Stable)
Ethylene CFR SEA: $870 (Stable)
Propylene FOB Korea: $850 (-$5)
Propylene CFR China: $880 (-$5)
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In China, the market is stirred after deals for South Korean homo-PP injection were recorded at $870/ton CFR China. Even though most other international suppliers are not willing to cut prices below $900/ton yet, buyers in this market hold tight to the expectations that the downtrend would persist in the near term.
In Southeast Asia, international suppliers race to reduce homo-PP prices to counterbalance the stubbornly weak demand. In Vietnam, a South Korean producer, who slashed yarn and injection offers earlier this week to $980/ton, has offered another $30/ton discount by mid of the week. Still, there is limited buying interest. This is because buyers are captivated by another overseas seller, who is collecting bids for South Korean materials at $900/ton. The supplier has not set final prices or closed any deals, but buyers are just not interested in any cargo at higher than $900/ton, at least, at the moment.
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Malaysia’s PrefChem seems to have achieved on-spec HDPE cargoes from the newly started-up unit. New offers from the producers emerged all over the Southeast Asian market at relatively competitive levels.
With the No. 1 PP unit, LLDPE, and HDPE unit successfully came online, PrefChem continues to work on the No. 2 PP plant at the same location. There have been speculations that by December, the producer might be able to operate the entire petrochemical complex at near to full tilt.
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