Morning Briefing - 17 January 2023
CommoPlast
Morning Briefing
17 January 2023
Brent: $84.46 (- $0.82)
WTI: Holiday
Naphtha CFR Japan: $699 (- $4)
Ethylene CFR NEA: $765 (- $35)
Ethylene CFR SEA: $840 (- $10)
Propylene FOB Korea: $855 (Stable)
Propylene CFR China: $885 (Stable)
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Trading sentiment across China and Southeast Asia dimed significantly on the first day of the week as the market embraced the holiday mood. Sellers held back on their limited cargoes in anticipation of firmer prices in February while converters in China and Vietnam have already taken off.
There have been questions that the current uptrend, particularly in the PP sector has eased producers' cost pressure and what will become of the strategic shutdown schedules reported earlier. Regional buyers expressed a continued cautious stance citing the potentially worsening energy crisis in the EU that might keep export orders among Asian manufacturers lower for longer.
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After a couple of weeks of taking a step back from the market, Indian PVC buyers returned to make additional purchases this week. Although it is still several weeks away from the March shipment price announcement, market sources are now expecting a key Taiwanese producer to introduce another round of price hikes given the latest change in the market movement. Players said new offers could rise between $30-50/ton, but prefer to monitor further.
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