Morning Briefing - 18 November 2022
CommoPlast
Morning Briefing
18 November 2022
Brent: $89.78 (- $3.08）
WTI: $81.64 (- $3.95)
Naphtha CFR Japan: $720 (+ $3)
Ethylene CFR NEA: $880 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $825 (Stable)
Propylene CFR China: $855 (Stable)
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With the resumed depreciation of the Chinese Yuan against the US dollar, purchasing interest for imported cargoes fell sharply toward the end of the week. There have also been signs that the recent rally in the homo-PP market has now reached its peak, with South Korean producers starting to step back on offers to close deals below the $900/ton mark, based on CFR China terms.
The good news is, in the span of 10 active trading days, many Asian PP suppliers managed to deplete a good number of cargoes to China, reducing inventory pressure substantially. Would this support a rebound in other regions, the market would have to wait and see.
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Although delayed, the Vietnamese homo-PP market started to react to the recent uptick in demand in China. Domestic offers inched slightly higher after key suppliers here exported a large of their on-hand stocks over the past week.
“But end product demand is still weak, which is expected to cap any potential upside of the raw material prices. We do not expect a V-shape rebound, however, the market might not drop any further” a local trader added.
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