Morning Briefing - 8 December 2022
CommoPlast
Morning Briefing
8 December 2022
Brent: $77.17 (- $2.18)
WTI: $72.01 (- $2.24)
Naphtha CFR Japan: $623 (- $19)
Ethylene CFR NEA: $890 (+ $10)
Ethylene CFR SEA: $920 (Stable)
Propylene FOB Korea: $855 (Stable)
Propylene CFR China: $890 (Stable)
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International benchmarks for crude oil fell to the lowest levels in 2022, forfeiting all the gains since Russia invades Ukraine as investors flee risky assets due to an uncertain economic outlook in the next quarter.
Besides, the US gasoline stocks rose for the fourth consecutive week while distillate stockpiles surged 6.2 million barrels despite the winter season, which typically sees strong demand for the products. Declining demand further pressure the market.
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A major Taiwanese producer announced January PVC shipment offers with increases of $90/ton from last month to India and $70/ton to China and Southeast Asia, effectively ending the eight consecutive months of declines.
The producer allocated substantially lower quantities to the export market this month citing the shorter working days which would disrupt the shipping schedules. Indian and Southeast Asian customers, apparently, responded well to the latest price list while expecting additional increases in the coming month.
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Trading sentiment in the domestic PP and PE market in China started to dim as players take a step back to assess the market outlook following the rapid easing of COVID-19 control measures while the vaccination program has not been completed.
The import PP market is calm. Buyers have made all necessary replenishment over the past week. However, Chinese customers continued to search for competitive import PE parcels. A good number of transactions have been reported for PE cargoes originating from Thailand and the Middle East at stable levels to $10/ton higher than last week.
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