Morning Briefing - 9 March 2023
CommoPlast
Morning Briefing
09 March 2023
Brent: $82.66 (- $0.63)
WTI: $76.66 (- $0.92)
Naphtha CFR Japan: $713 (- $29)
Ethylene CFR NEA: $960 (Stable)
Ethylene CFR SEA: $980 (Stable)
Propylene FOB Korea: $920 (Stable)
Propylene CFR China: $935 (Stable)
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Asian market participants are waiting for a key Taiwanese producer to announce April PVC shipment offers and considering the dwindling demand in China and lack of buying appetite among Indian customers, it is expected that new prices would drop between $30-50/ton.
Indian customers have been refraining from making additional purchases ahead of the financial year-end closing. Buyers here reported a heavy influx of imported PVC in February of more than 300,000 tons, allowing manufacturers to hold their positions until new prices become more attractive.
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In China, trading sentiment continued to deteriorate following the resumed falling on Dalian Commodity Exchange. Market participants are wary of the demand outlook now that the government has no plan to inject any large economic stimulus package to boost consumption while the FED signalled a more aggressive than initially expected key interest rate hikes in the next meeting this month.
More international suppliers are cutting import PE offers to this market. On the other hand, with spot homo-PP yarn trading in the local market at CNY7700/ton including VAT (or $982/ton excluding VAT), overseas PP sellers almost have no chance to conclude deals here without severe damage to their margins.
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