Morning Briefing - 14 February 2023
CommoPlast
Morning Briefing
14 February 2023
Brent: $86.61 (+ $0.22)
WTI: $80.14 (+ $0.42)
Naphtha CFR Japan: $722 (+ $4)
Ethylene CFR NEA: $875 (Stable)
Ethylene CFR SEA: $880 (Stable)
Propylene FOB Korea: $965 (Stable)
Propylene CFR China: $995 (Stable)
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While market participants across the Southeast Asia region are expecting higher import PE offers for March shipment due to the rising upstream costs and reduced availability, a key Qatari producer moves to cut offers to China market despite the ongoing maintenance shutdown.
The price decision caused heavy concern among Asian buyers and clearly shed light on the weak post-holiday demand condition in China market.
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In Indonesia, the persistently weak demand triumphed over the limited availability of homo-PP cargoes. Both local and international suppliers continue to down-adjust the selling offers to this market, still, responses are way below expectations.
Indonesian customers have stocked up the necessary cargoes since late January while Ramadan demand has not shown a strong uptick.
“Although the market might not drop significantly because of the cost-push, we also do not see the support for offers to rise again. As long as the demand in China remains dimmed, the Asian PP market might track the stable trend at the current levels,” a buyer commented.
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