Morning Briefing - 19 December 2022
CommoPlast
Morning Briefing
19 December 2022
Brent: $79.04 (- $2.17)
WTI: $74.29 (- $1.82)
Naphtha CFR Japan: $626 (- $16)
Ethylene CFR NEA: $870 (- $10)
Ethylene CFR SEA: $920 (Stable)
Propylene FOB Korea: $865 (+ $10)
Propylene CFR China: $900 (+ $10)
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The Chinese PP and PE market ended last week on a table note as the market is torn between the bullish expectations associated with the reopening and the actual outbreak situation at the moment. The softer energy complex coupled with the heightened risk of a financial recession weighs on the sentiment.
However, in the import market, major international PP and PE suppliers maintained a firm stance on January shipment offers citing the lack of availability and the rising market prices in South Asia. Buyers decided to slow down purchases slightly to monitor further development in the coming week.
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There were not any major changes in trading sentiment across the Southeast Asia region. Sources said that Thai buyers were active the week before, but started to resist import homo-PP prices above the $1000/ton threshold.
A similar situation was observed in Indonesia, where deals for non-dutiable Vietnamese PP yarn and injection cargoes were concluded at $980/ton based on CIF term. The market seemed to have established a ceiling price that dictates the price levels buyers could accept.
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