Morning Briefing - 11 July 2023
CommoPlast
Morning Briefing
11 July 2023
Brent: $77.69 (- $0.78)
WTI: $72.99 (- $0.87)
Naphtha CFR Japan: $564 (+ $14)
Ethylene CFR NEA: $750 (Stable)
Ethylene CFR SEA: $750 (Stable)
Propylene FOB Korea: $725 (Stable)
Propylene CFR China: $770 (Stable)
*Data represent closing prices of the previous trading day
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In Indonesia, key local producers rollover spot PP and PE offers from the previous week despite having reduced inventory pressure, highlighting the cautious stance among sellers here.
It is reported that purchasing activities slow down sharply as converters have largely completed their replenishments while discussing the transference of higher raw material costs to their finished goods with their customers. Sources are monitoring closely the development in the end-product market to gauge the sustainability of the firmer trend in the PP and PE sectors.
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In statistics news, China's local production outputs continued to recover in May as plants return from scheduled maintenance work. Notably, local HDPE outputs have been rising above 1 million tons per month over the past several months, and in May, the figure hit an all-time high of 1.1 million tons.
Data from CommoPlast suggested that the average local PE production in the first five months of 2023 rose about 9.5% compared to the same period last year, which inevitably impacts demand for imported materials.
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In plant status news, Saudi Aramco and TotalEnergies have awarded contracts to construct a greenfield petrochemical complex in Jubail, Saudi Arabia, which is to be integrated into the existing refinery facility. The new plant, named Amiral, houses a mixed feed cracker, capable of producing 1.65 million tons/year of ethylene. Downstream units comprise two PE lines, each having an annual output of 500,000 tons/year.
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