Morning Briefing - 21 March 2022
CommoPlast
Morning Briefing
21 March 2022
Brent: $107.93 (+ $1.29）
WTI: $104.7 (+ $1.72）
Naphtha CFR Japan: $949 (+ $38)
Ethylene CFR NEA: $1350 (+ $50)
Ethylene CFR SEA: $1350 (+ $50)
Propylene FOB Korea: $1240 (Stable)
Propylene CFR China: $1180 (Stable)
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The export offers for carbide-based PVC from China fell $40-50/ton to $1280-1300/ton FOB China in the week ending 18 March 2022 following the rapid spreading of the COVID-19 outbreak that halted construction activities across major cities such as Dongguan, Foshan, Shandong, Shanghai, Jilin, Shenzhen.
For the first time in 2022, the weekly local PVC inventories registered a reduction of 10,200 tons, clearly highlighting the state of demand condition. Even after the drop, the local stocks stood at the highest level since May 2020.
Chinese PVC suppliers might work to accelerate export in the coming weeks. However, players tend to hold an optimistic view regarding the post-lockdown outlook after the government vows to ease pressure on the property market.
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In Vietnam, a key Malaysian producer set final prices for April loading PE cargoes at $1850/ton for LDPE film and $1590/ton for HDPE, all based on CIF term, which attracted very limited buying attention for the fact that many other origins are lower than the producer’s prices by more than $100/ton.
There have been reports that the Malaysian maker would have to cut export allocations by up to 50% due to the production rate cuts in the coming month. Buyers are turning to competitive re-export cargoes from China before this source of supply dry up.
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