Morning Briefing - 11 May 2023
CommoPlast
Morning Briefing
11 May 2023
Brent: $76.41 (- $1.03)
WTI: $72.56 (- $1.15)
Naphtha CFR Japan: $602 (- $6)
Ethylene CFR NEA: $90 (Stable)
Ethylene CFR SEA: $920 (Stable)
Propylene FOB Korea: $870 (Stable)
Propylene CFR China: $890 (Stable)
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Following three consecutive weeks of sharp decline, the import homo-PP market in Vietnam is now at the lowest levels in nearly five months with Chinese cargoes spearheading the downtrend, breaching below the $1000/ton threshold.
The persistently weak demand coupled with comfortable supply conditions weighs heavily on the market. Even at three-digit price levels, purchasing activities remain subdued as buyers fear further price reductions ahead.
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In related industry news, Vietnam’s Nghi Son Refining and Petrochemical Company Limited (NSRP) has reportedly submitted an urgent report to the Minister of Industry and Trade pleading intervention as the company faces heightened risks of production stoppage due to cashflow issues after failing to reach another financial restructuring agreement with key investor - PetroVietnam (PVN).
This is not the first time NSRP faces production stoppage threats due to financial issues. In February 2022, the company actually slashed operating rates substantially for a period of about a month due to tight cashflow while negotiating for a better loan repayment term with lenders.
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