Morning Briefing - 20 December 2022
CommoPlast
Morning Briefing
20 December 2022
Brent: $79.80 (+ $0.76)
WTI: $75.19 (+ $0.90)
Naphtha CFR Japan: $619 (- $7)
Ethylene CFR NEA: $870 (Stable)
Ethylene CFR SEA: $920 (Stable)
Propylene FOB Korea: $865 (Stable)
Propylene CFR China: $900 (Stable)
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The Chinese PP and PE markets were calm on the first trading day of the week as market participants struggled to cope with the rising number of COVID-19 infection cases both within and outside of their organizations.
Despite the heavy bullish speculations on the demand outlook in the coming months following the abrupt exit from the Zero-Covid policy; the actual demand condition at the time of this report is not all great. Manufacturers have not received a better number of PO for finished products leading many to plan an early Lunar New Year holiday this year
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In Southeast Asia, a key Saudi Arabia producer announced January PE shipment offers on a mixed note, underlining the attempt to adapt to the different demand conditions in each market.
New HDPE and LLDPE film offers to Indonesia fell $10-20/ton from the previous month. New HDPE and LLDPE film offers to Vietnam rose by $20-30/ton.
In Vietnam, the increases are much expected considering the recent active replenishment activities in China that helped most overseas sellers to deplete the on-hand stocks. Still, the acceptance is weak. Buy ideas emerge at $950/ton for LLDPE film and $920-930/ton for HDPE film, based on CIF Vietnam terms.
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