Morning Briefing - 25 November 2022
CommoPlast
Morning Briefing
25 November 2022
Brent: $85.34 (- $0.07）
WTI: Holiday
Naphtha CFR Japan: $687 (- $17)
Ethylene CFR NEA: $880 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $835 (Stable)
Propylene CFR China: $870 (Stable)
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After the Chinese authorities pledged more supports to stimulate economic growth including a timely reduction in bank’s RRR and more credit lines to property developers, major contracts for January 2023 delivery on Dalian Commodity Exchange surged sharply. For once, the LLDPE contract rose above the CNY8,000/ton threshold for the first time since 10 October 2022.
Chinese buyers were seen rushing back to the import market to scoop up all LLDPE film cargoes priced below the $950/ton threshold. A strong number of deals for Middle Eastern cargoes were reported in the range of $920-940/ton CFR China. However, buyers remained mindful about purchases above the benchmark.
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While the local PP market in Indonesia rebounded this week, the PE market here continues to gallop lower and toward the end of the week, traders become even more aggressive in offering discounts on spot HDPE film cargoes.
Due to the weak end-product businesses, and in fact, several HDPE bag makers informed of about 20% dropped in finished goods prices this month, manufacturers refused to make purchases above IDR17,000,000/ton excluding VAT ($1085/ton) to protect the bottom-line.
Indonesian customers predominantly believed that there are still rooms for the local PE market to move lower in the coming days.
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