Morning Briefing - 11 January 2023
CommoPlast
Morning Briefing
11 January 2023
Brent: $80.10 (+ $0.45)
WTI: $75.12 (+ $0.49)
Naphtha CFR Japan: $652 (- $4)
Ethylene CFR NEA: $820 (Stable)
Ethylene CFR SEA: $870 (Stable)
Propylene FOB Korea: $860 (Stable)
Propylene CFR China: $890 (Stable)
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In Indonesia, buyers in the PP sector were more active in making additional replenishment on the second trading day of the week bearing concerns over the tightening supply outlook. However, customers here tend to opt for Chinese cargoes at more competitive levels than South Korean materials.
In Vietnam, homo-PP yarn was available in the range of $1020-1200/ton based on CIF terms. The $180/ton gap between the lower- and the higher-end of the price range is rather comical, especially when suppliers of cargoes priced at the lower-end face difficulties to attract deals.
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Judging from the slothful trading activities over the past several days, it was widely expected that Chinese customers have completed all pre-holiday restocking and are ready to leave their desks. Surprisingly, the appreciated Yuan against the US dollar coupled with the tightening supply outlook lured PE buyers back to the market for last-minute purchases, especially for LDPE film.
The sweeping buying activities left at least three Middle Eastern producers out of allocations just hours after the new price announcement. Some buyers even turned to USA cargoes, which might only arrive in May.
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