Morning Briefing - 17 July 2023
CommoPlast
Morning Briefing
17 July 2023
Brent: $79.87 (- $1.49)
WTI: $75.42 (- $1.47)
Naphtha CFR Japan: $603 (+ $12)
Ethylene CFR NEA: $750 (Stable)
Ethylene CFR SEA: $745 (Stable)
Propylene FOB Korea: $730 (+ $5)
Propylene CFR China: $775 (Stable)
*Data represent closing prices of the previous trading day
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The Chinese PP and PE market ended the week of 14 July on a strong note as optimism surrounding more pro-growth measures from the government fueled the rally on Dalian Commodity Exchange.
Data from CommoPlast suggested spot homo-PP yarn traded in the local market rose 2.8% within this week alone while spot LLDPE film added an average of 1%. Meanwhile, the total PP and PE inventories in China reduced a considerable 30,000 tons from the previous session to conclude at 640,000 tons in the month to date 14 July 2023.
Freeing from sales pressure might encourage Chinese sellers to maintain a firm stance on spot PP and PE offers in the coming days even though purchasing activities showed a significant slowdown.
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In Vietnam, a key Chinese supplier lifted import homo-PP offers by $50-60/ton from earlier this week to $980/ton CIF Vietnam citing the lack of availability after achieving satisfactory sales results in the domestic market.
Although no deals were concluded immediately, sources said that the development might set the tone for the market here in the near term.
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In related plant status news, South Korea’s Hyundai Chemical Co has restarted the 500,000 tons/year PP plant in Daeasan after nearly six months of staying offline. The producer started to open offers for August loading to Southeast Asia at relatively attractive price levels.
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