Morning Briefing - 18 July 2023
CommoPlast
Morning Briefing
18 July 2023
Brent: $78.50 (- $1.37)
WTI: $74.15 (- $1.27)
Naphtha CFR Japan: $576 (- $27)
Ethylene CFR NEA: $750 (Stable)
Ethylene CFR SEA: $745 (Stable)
Propylene FOB Korea: $730 (Stable)
Propylene CFR China: $775 (Stable)
*Data represent closing prices of the previous trading day
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Major PP and LLDPE contracts on Dalian Commodity Exchange busted the bull run on Monday, 17 July 2023 after official data showed the Chinese economy expanded at a slower pace than expected. However, the development did not generate a knee-jerk effect on the domestic spot market as the low inventory pressure cushioned the fall.
Nevertheless, trading activities fell sharply as converters and arbitrage traders took a backseat to monitor further development, believing the recent rally might have reached the peak.
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The Southeast Asian market has not responded to the weakening Chinese market on the first trading day of the week.
In Indonesia, a key domestic producer lifted spot PP and PE offer claiming to have limited ready stocks and similar to the import market, spot PP saw a much larger hike than PE.
In Vietnam, local suppliers raced to lift spot homo-PP offers to VND 24,300,000 – 24,800,000/ton inclusive of the 10% VAT ($934 – $952 exclude PPN 10%) – fetching support from the remaining momentum from the previous week.
Nevertheless, both markets witnessed a build-up in resistance, reflecting in the softer purchasing activities.
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