Morning Briefing - 18 March 2022
CommoPlast
Morning Briefing
18 March 2022
Brent: $106.64 (+ $8.62）
WTI: $102.98 (+ $7.94）
Naphtha CFR Japan: $911 (- $10.5)
Ethylene CFR NEA: $1300 (Stable)
Ethylene CFR SEA: $1300 (Stable)
Propylene FOB Korea: $1240 (- $5)
Propylene CFR China: $1180 (- $10)
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Trading sentiment in the local China market picks up slightly on Thursday, 17 March 2022 after the government vows to support growth by stabilising the financial market and easing pressure on the property market. Authorities are also looking for ways to keep the manufacturing sector running amid the rising number of COVID-19 infection cases, which proved not an easy task.
Inventories at Sinopec and CNPC’s warehouses registered the first draw of 25,000 tons since last Friday, to approximately 1,005,000 tons as of 17 March 2022.
Several Chinese traders told CommoPlast they plan to stay focused on the export market until the local demand improves further. At the time of this report, sources claimed to have achieved satisfactory sales result for PP to the European market at $1280/ton FOB China.
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South Korea’s Lotte Chemical is the latest company joining the wave of operating rate cuts among naphtha cracking operators across Asia in recent weeks due to negative margins. The Yeosu cracker would be operating at 80% capacity while the Daesan plant would run at 90% starting 24 March.
In South Korea alone, Hanwha, LG Chem, YNCC, and KPIC have all either shut down or cut rates since January-February.
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