Morning Briefing - 21 July 2023
CommoPlast
Morning Briefing
21 July 2023
Brent: $79.64 (+ $0.18)
WTI: $75.63 (+ $0.28)
Naphtha CFR Japan: $598 (+ $10)
Ethylene CFR NEA: $770 (+ $20)
Ethylene CFR SEA: $745 (Stable)
Propylene FOB Korea: $735 (+ $5)
Propylene CFR China: $775 (Stable)
*Data represent closing prices of the previous trading day
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The Asian ethylene market hit the highest levels in six weeks amid thin discussion as buyers have mostly covered August production needs and prefer to wait on the sidelines. The volatile upstream naphtha costs coupled with the soft downstream demand further encourage ethylene buyers to adopt a cautious stance. One of the main concerns is the rising ethane costs in the US, which might curb the availability of seep-sea cargoes.
Similarly, the propylene market track a stable to firmer trend, however, the prospect is capped as local offers in China inch lower ahead of the restart of several propane dehydrogenations (PDH) units that would ease the current supply tightness.
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International suppliers started opening August PE shipment offers to the Southeast Asia market with large hikes from July citing the absence of inventory pressure. Negotiations are ongoing, though players do not expect significant discounts.
At the time of this report, deals for Middle Eastern HDPE film have been done at $1000/ton CIF Vietnam, which set a benchmark for other sellers.
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