Morning Briefing - 4 November 2022
CommoPlast
Morning Briefing
04 November 2022
Brent: $94.67 (- $1.49）
WTI: $88.17 (- $1.83)
Naphtha CFR Japan: $689 (- $1)
Ethylene CFR NEA: $880 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $830 (Stable)
Propylene CFR China: $840 (Stable)
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One of the highlights in the Chinese PE market this week is that import LDPE film offers breached below the $1000/ton threshold, with at least two producers agreeing to close deals at $970-990/ton CFR China. These are the lowest levels since mid-August 2020, still, market participants do not see any strong support to halt the current downswing.
“The persistent downtrend in the import market is not surprising when we take the currency issue into account. The US dollar is strengthening, and we are running out of quota to lock the exchange rates. We must calculate the probability of making losses due to the inability to transfer the costs to the buyers,” added, another Chinese trader.
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In Indonesia, Import offers for non-dutiable Vietnamese homo-PP are seen racing lower this week in Indonesia, breaching below the $1000/ton mark as a result of the darkening demand outlook across the region.
There have been discussions that there are simply no other markets throughout Asia that can absorb the cargo at the moment, hence, sellers have very limited alternatives for attracting deals.
While there have been some deals observed, many buyers are asking for prices below the $900/ton threshold.
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