Morning Briefing - 15 March 2022
CommoPlast
Morning Briefing
15 March 2022
Brent: $106.9 (- $5.77）
WTI: $103.01 (- $6.32）
Naphtha CFR Japan: $1012 (- $7.6)
Ethylene CFR NEA: $1350 (Stable)
Ethylene CFR SEA: $1350 (Stable)
Propylene FOB Korea: $1285 (- $20)
Propylene CFR China: $1235 (- $30)
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The Chinese government has officially put two cities under lockdown, including Shenzhen and Jilin to stem the COVID-19 spread. Both futures and spot markets nosedived on fears that demand would fall sharply would the government impose more lockdown. At the moment, inter-city and inter-province transportations have already faced hefty restrictions.
Spot homo-PP and LLDPE film fell as much as CNY400/ton while the total stocks at Sinopec and CNPC’s warehouses piled up above the 1 million tons threshold for the first time since 1 March.
Export offers for Chinese PP fell $20-30/ton compared to the previous week.
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One of the key developments in the Southeast Asian PE market is the resumption of spot offers from a major Indonesian producer after a brief disruption that caused panic buying among Indonesian buyers in the previous week. The new price list gained $152/ton on LLDPE film and $212/ton on HDPE film. Responses from the market are weak.
In Vietnam, an increasing number of re-export cargoes from China emerged at way more competitive levels than the direct offers from the producers for the same cargoes. Although PE producers are under cost pressure, the surface of re-export cargoes might anchor the uptrend in Vietnam, as buyers fear that the weakening demand in China might outweigh other factors in the immediate term.
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