Morning Briefing - 12 January 2023
CommoPlast
Morning Briefing
12 January 2023
Brent: $82.67 (+ $2.57)
WTI: $77.41 (+ $2.29)
Naphtha CFR Japan: $672 (+ $21)
Ethylene CFR NEA: $820 (Stable)
Ethylene CFR SEA: $870 (Stable)
Propylene FOB Korea: $850 (Stable)
Propylene CFR China: $880 (Stable)
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Key Saudi Arabia producer set final PE prices for February shipment to Vietnam with a minor discount of $10/ton from the initial price list. The supply tightness overshadows the higher-than-expected deal price levels, allowing the supplier to move cargoes with ease this month. “Buyers have accepted the reality that the uptrend is here to stay,” an international trading house added.
Meanwhile, a Malaysian producer offers a $20/ton reduction on LDPE film to Vietnam but transactions are thinner than other PE grades due to sufficient on-hand stocks on the buyers’ side.
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Chinese customers are not done with pre-holiday replenishments just yet!
If in the previous session, the market witnessed sweeping purchases of imported LDPE film in China, by mid of the week, another round of active buying emerged. This time, Chinese buyers scooped up all available LLDPE film cargoes priced below the $1000/ton threshold.
The strengthening Chinese Yuan that makes imports more competitive coupled with the tightening supply outlook stemming from various strategic shutdowns continue to encourage buyers to proceed with new purchases regardless of the uncertain demand outlook.
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