Morning Briefing - 12 December 2022
CommoPlast
Morning Briefing
12 December 2022
Brent: $76.10 (- $0.05)
WTI: $71.02 (- $0.44)
Naphtha CFR Japan: $623 (+ $6)
Ethylene CFR NEA: $890 (Stable)
Ethylene CFR SEA: $920 (Stable)
Propylene FOB Korea: $855 (Stable)
Propylene CFR China: $890 (Stable)
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Following the $70/ton hikes on January PVC shipment offers from a major Taiwanese producer to the Southeast Asia market, regional suppliers were more aggressive in lifting offers. Malaysian customers reported receiving the latest offers from a Thailand producer with $100/ton hikes from the previous month while Indonesian cargoes jumped $120/ton.
Asian market participants generally expected the current rebound trend to persist in the next couple of months as suppliers are free from sales pressure after achieving strong sales results in India over the past weeks. However, the weakening global growth and the continuous interest rate hikes cast an enormous shadow over the property market, which eventually affect the demand for PVC pipe and profile.
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In spite of the fact that key PP and LLDPE contracts on the Dalian Commodity Exchange fell three out of five trading sessions last week and the concerns over the aftermath of the rapid COVID-19 controls, Chinese buyers remain interested in off-taking additional PP and PE cargoes from the import market.
Deals for Indian homo-PP were concluded at $10/ton higher at the end of last week compared to a few days before, indicating the presence of demand. Meanwhile, all import LLDPE film priced at $950/ton or below were being scooped up. All of these cargoes are scheduled to arrive after the Lunar New Year holiday.
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