May 29, 2023 5:09 p.m.

Morning Briefing - 20 Mar. 2023

CommoPlast CommoPlast Asia Sdn Bhd
On the bright side, Chinese buyers became more willing to make additional replenishment following weeks of waiting on the sidelines as the latest prices were deemed less risky.
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Morning Briefing

20 March 2023

 

Brent:  $72.97 (- $1.73)

WTI: $66.74 (- $1.61)

 

Naphtha CFR Japan: $631 (+ $16)

 

Ethylene CFR NEA: $950 (- $10)

Ethylene CFR SEA: $970 (- $10)

 

Propylene FOB Korea: $880 (- $20)

Propylene CFR China: $905 (- $20)

 

www.commoplast.com     

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In China, the domestic PP and PE market tracked the weakening trend throughout the previous week as the darkening economic outlook coupled with the deepening banking turmoil in the West hampered buyers’ confidence. 

On the bright side, Chinese buyers became more willing to make additional replenishment following weeks of waiting on the sidelines as the latest prices were deemed less risky. 

Meanwhile, the competitive domestic cargoes further pressurized overseas suppliers to step back on spot offerings in this market. Particularly, non-dutiable Southeast Asian LLDPE film were concluded at $1040-1065/ton CFR China, prompting buyers to place bids for dutiable cargoes well below the $1000/ton threshold.

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The regional PVC market extended the weakening trend amid lacklustre demand in key markets including India and China. 

Malaysian buyers reported that a key South Korean producer down-adjusted their offers twice last week and still, the number of transactions was thin.

In India, a key local producer slashed spot PVC offers by INR3,000/ton while introducing a price protection scheme until 1 April 2023. Price protection is usually used by domestic producers to encourage purchasing activities when customers withhold replenishments due to highly volatile market conditions. 

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