Morning Briefing - 22 November 2022

CommoPlast

Morning Briefing

22 November 2022

Brent:  $87.45 (- $0.17）

WTI: $79.73 (- $0.35)

Naphtha CFR Japan: $701 (- $21)

Ethylene CFR NEA: $880 (Stable)

Ethylene CFR SEA: $880 (Stable)

Propylene FOB Korea: $835 (Stable)

Propylene CFR China: $870 (+ $5)

*Data represent closing prices of the previous trading day

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A key Taiwanese producer opened December PVC offers with additional reductions to Asian market, marking the eighth consecutive month of declines. 

However, the market is not all daunting. Indian customers quickly scoop up all available quantities, which coupled with the recent uptick in replenishment activity in China, prompted expectations that the market might have reached the bottom. 

“There must be a technical correction because the downturn has been long and painful. Having said so, any potential rebound might be capped given the cloudy global economy outlook,” an international trading house commented. 

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A major Saudi Arabia producer opened fresh PE offers for December loading to Southeast Asia with reductions, which is surprising consider the fact that the maker previously informed customers about the intention to skip December offerings due to maintenance shutdown.

The latest price list to Indonesia fell $50/ton on HDPE film while the price list to Vietnam nosedive $80-90/ton on both HDPE and LLDPE film.

“Our firm bid is at $920/ton for LLDPE film. We are aware that our bids are below deals concluded in China previous week, but this is a calculated price decision. The Vietnamese Dong is expected to depreciate further in the coming months, which mean we are at risk of making loses,” a Vietnamese trader commented.

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