Feb 06, 2023 6:49 a.m.

Morning Briefing - 29 November 2022

CommoPlast CommoPlast Asia Sdn Bhd
Morning Briefing - 29 November 2022
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Morning Briefing

29 November  2022

 

Brent:  $83.19 (-$0.44

WTI: $77.24 (+$0.96)

 

Naphtha CFR Japan: $670 (-$30)

 

Ethylene CFR NEA: $880 (Stable)

Ethylene CFR SEA: $880 (Stable)

 

Propylene FOB Korea: $840 (+$5)

Propylene CFR China: $880 (+$10)

 

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While the weekend protests have generally subsided in China as the government mobilised police forces to curb illegal gatherings; the rising number of COVID-19 infection cases remains the biggest threat to the fragile year-end outlook. 

Nevertheless, Chinese suppliers are very reluctant to introduce any major price cuts on both PP and PE cargoes citing the manageable inventory levels at the time of this report. The question is how long will this firm stance hold when the government shows no signs of easing the draconian COVID-19 control measures? 

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Southeast Asian market participants are holding their breath waiting for further development in the nearby China market. However, sellers do not seem to have the patience, hence, pushing forward with selling for cargoes they are facing pressure.

In Vietnam, a key Middle Eastern producer collects bids for the December shipment PE cargoes at $80/ton below the initial price list for LLDPE film at $930/ton and $50-60/ton below the price list for HDPE film at $940-950/ton, all based on CIF terms. Buyers have lower price ideas.  

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