Morning Briefing - 25 August 2023
CommoPlast
Morning Briefing
25 August 2023
Brent: $83.36 (+ $0.15)
WTI: $79.05 (+ $0.16)
Naphtha CFR Japan: $660 (+ $5)
Ethylene CFR NEA: $830 (Stable)
Ethylene CFR SEA: $860 (Stable)
Propylene FOB Korea: $780 (Stable)
Propylene CFR China: $820 (Stable)
*Data represent closing prices of the previous trading day
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A key Saudi Arabia producer has set final PE prices for September loading to Vietnam at higher levels than initial expectation at $1000/ton for LLDPE film and $1070/ton for HDPE film based on CIF term. While Vietnamese buyers are reluctant to proceed with large purchases this month, the producer claimed to have received positive responses elsewhere, especially from Indian buyers.
As the Indian market embraces the preparation for Diwali demand, trading activities here have been improving. In addition, the implementation of Indian Standard (BIS) on the import of PE and EVA cargoes this October also scared buyers into restocking for fear of tighter availability ahead since a number of international producers have not obtained the quality certificate in order to sell to India.
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Malaysian HDPE film emerged in Indonesia this week with $90/ton hikes week-on-week, which caused heavy apprehension among buyers here. Players attributed the aggressive price decision to the absence of a Thailand producer this week due to an unspecified production issue.
Apparently, the lethargic demand condition discouraged buyers from accepting the full hikes as deals were done at $50/ton discounts from the initial price list.
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