Morning Briefing - 28 December 2022
CommoPlast
Morning Briefing
28 December 2022
Brent: $84.33 (+ $0.41)
WTI: $79.53 (- $0.03)
Naphtha CFR Japan: $651 (+ $13)
Ethylene CFR NEA: $870 (Stable)
Ethylene CFR SEA: $910 (Stable)
Propylene FOB Korea: $865 (Stable)
Propylene CFR China: $900 (Stable)
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Vietnamese homo-PP offers surged between $10-35/ton in Indonesia this week on the back of the reduced availability for January shipment. A couple of bids surfaced at $1000/ton CIF Indonesia while many other buyers prefer to wait on the sidelines due to the persistently weak end-product demand.
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A few international suppliers started to complain about the difficulties in collecting Letters of Credit (LC) for previously sold cargoes in Pakistan and Bangladesh due to the lack of US dollars in these markets.
The development coupled with the dwindling demand in Southeast Asia and China cast fear into the market that the current uptrend lack fundamental support to sustain.
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In China, deals for dutiable homo-PP have been reached at $910/ton CFR China – a price level that has been unchanged for three weeks in a row. It becomes very challenging for overseas makers to introduce additional hikes on import homo-PP to China due to the soft domestic market.
Data from CommoPlast showed that spot homo-PP traded in Eastern China on 27 December was at CNY 7650-7800/ton including VAT (or $973 – 992/ton excluding VAT).
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