Morning Briefing - 19 July 2023
CommoPlast
Morning Briefing
19 July 2023
Brent: $79.63 (+ $1.13)
WTI: $75.75 (+ $1.60)
Naphtha CFR Japan: $568 (- $8)
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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A key Taiwanese producer reportedly lifted August PVC offers to Asia with a $60/ton increase from the previous month – much larger than the initial market expectations of $30/ton.
Initial responses from the market were less upbeat than expected, especially from Indian customers, who prefer to wait on the sidelines waiting for a major local producer to set the tone for the domestic market.
Nevertheless, the Taiwanese major might not face any major challenges in depleting cargoes in India given the reduced availability and brighter demand outlook.
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In China, the import PE market extended the firming trend regardless of the softening domestic market. Qatari cargoes saw a $10-30/ton gain week-on-week while Saudi Arabia materials registered a $20/ton hike.
Tightening supply among Middle Eastern suppliers stemming from a lingering gas shortage was cited as the main support for the price decision. On the other hand, a Thailand supplier stepped back from the latest price hikes in response to the stiff market resistance, signalling a possibility that the recent upswing might be capped.
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