Morning Briefing - 7 February 2023
CommoPlast
Morning Briefing
07 February 2023
Brent: $80.99 (+ $1.05)
WTI: $74.11 (+ $0.72)
Naphtha CFR Japan: $698 (- $2)
Ethylene CFR NEA: $860 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $945 (Stable)
Propylene CFR China: $980 (Stable)
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While Indonesian customers started seeing some minor downward adjustments on import homo-PP offers from various origins, buyers in India also reported an increasing number of import offers from Chinese suppliers that unavoidably induces a more cautious stance among market participants.
The weaker-than-expect post-holiday demand in China is driving Chinese sellers to explore the export market, and their offers are now making up the lower end of the overall price range across the Asia region. This development is expected to anchor the current uptrend in the Asian PP market.
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In the upstream market, both ethylene and propylene are on the rise due to limited supply. A series of crackers in South Korea is operating at reduced rates. It is estimated that in February, the average operating rate among online units is about 75%.
YNCC has reportedly postponed the restart at its No. 3 naphtha cracker in Yeosu to early March from the initial schedule in late February due to persistently weak margins. The unit was shut since Oct. 2022.
Industry sources said that Asian crackers might only increase their operating rates in March on expectations that demand from China would be better by that time.
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