Mar 29, 2024 2:42 p.m.

Morning Briefing - 01 February 2023

CommoPlast CommoPlast Asia Sdn Bhd
Morning Briefing - 01 February 2023
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CommoPlast

Morning Briefing

01 February 2023

 

Brent:  $84.49 (- $0.41)

WTI: 78.87 (+ $0.97)

 

Naphtha CFR Japan: $691 (- $9)

 

Ethylene CFR NEA: $780 (Stable)

Ethylene CFR SEA: $840 (Stable)

 

Propylene FOB Korea: $920 (+ $20)

Propylene CFR China: $950 (+ $20)

 

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While regional suppliers continue to aggressively lift import homo-PP offers to Indonesia in an attempt to catch up with the rising domestic offers, there have been signs that buyers deemed threats to the sustainability of the current upswing.

For an instant, the emergence of non-dutiable Vietnamese cargoes at $40-50/ton below offers from another Vietnamese producer and Chinese suppliers stepping back on their prices to facilitate deal.  

Indonesian customers are slowing down purchases substantially to monitor further development while bearing expectations that the market might be nearing the peak.

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The bullish sentiment observed in the previous day has evaporated. Similar to the Shenhua auction platform and the Dalian Commodity Exchange, traders are the most active party in the domestic spot market since manufacturers are still away. With more traders present, the market tends to be more fluctuating.

Nevertheless, when it comes to prices, local producers might be less likely to concede to any large discounts because of the lack of inventory pressure. For the first time since CommoPlast recorded inventory data, the total PP and PE stocks at Sinopec and CNPC’s warehouses piled up to less than 1 million tons after the Lunar New Year holiday, giving sellers plenty of room to navigate the soft market.  

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