Morning Briefing - 22 March 2022
CommoPlast
Morning Briefing
22 March 2022
Brent: $115.62 (+ $7.69）
WTI: $112.12 (+ $7.42）
Naphtha CFR Japan: $966.1 (+ $17.1)
Ethylene CFR NEA: $1350 (Stable)
Ethylene CFR SEA: $1350 (Stable)
Propylene FOB Korea: $1250 (+ $10)
Propylene CFR China: $1180 (Stable)
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International benchmarks for crude oil surged for the third straight session on Monday, 21 March 2022, gaining more than 7% as several European Union countries push for the fifth round of sanctions on Russia, including its barrels.
The uptrend remains in place during the early trading hours in Asia, which causes heavy concerns among buyers in the petrochemical market.
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While there is limited improvement in the local market, Chinese suppliers remain focused on the export ground on the first trading day of the week. Spot homo-PP yarn from this origin continues to make up the lower end of the price range in Indonesia and Vietnam, at $1370-1380/ton based on CIF terms. Negotiations are ongoing as buyers eye $10-20/ton lower on deals, indicating that the market might have found the floor, particularly when oil prices surge again.
Apparently, Chinese LLDPE film cargoes emerge consistently in Southeast Asia these two weeks in the range of $1400-1440/ton CIF for both coal-based and regular grades. The time span is too short to determine if this is a trend though the local productions rose sharply over the past months, however, it is something worth monitoring.
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