Morning Briefing - 3 March 2023
CommoPlast
Morning Briefing
03 March 2023
Brent: $84.75 (+ $0.44)
WTI: $78.16 (+ $0.47)
Naphtha CFR Japan: $723 (- $4)
Ethylene CFR NEA: $960 (Stable)
Ethylene CFR SEA: $980 (+ $10)
Propylene FOB Korea: $930 (Stable)
Propylene CFR China: $945 (Stable)
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The Chinese PP and PE markets are not the only ones suffering from the persistently dwindling demand condition over the past several weeks. Despite the improving construction activities, the PVC market here shows no sign of improvement with spot offers for carbide-based PVC dropping CNY50/ton while ethylene-based PVC fell CNY100/ton.
Weak demand caused local PVC inventories to pile up for seven consecutive weeks, which spark speculations that April PVC offers from a key Taiwanese producer might soften.
This week, export offers from Chinese suppliers have already dropped between $10-30/ton depending on the cargoes. Market sources reported mediocre feedback from overseas buyers.
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After much reluctance, suppliers for non-dutiable Vietnamese homo-PP agreed to conclude deals below the $1100/ton threshold in Indonesia, which attracted a satisfactory number of transactions.
Sources speculated that in the immediate term, suppliers for this origin might not willing to concede to additional discounts given the upcoming shutdown at Nghi Son Refinery and Petrochemical.
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