Morning Briefing - 23 March 2022
CommoPlast
Morning Briefing
23 March 2022
Brent: $115.48 (- $0.14）
WTI: $111.76 (- $0.36）
Naphtha CFR Japan: $965.6 (- $0.5)
Ethylene CFR NEA: $1350 (Stable)
Ethylene CFR SEA: $1350 (Stable)
Propylene FOB Korea: $1260 (+ $10)
Propylene CFR China: $1180 (Stable)
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The domestic PP and PE market in China witnessed little changes on the second day of the week although the government waivers the ‘0 Tolerance’ COVID-19 policies. Total stocks belonging to Sinopec and CNPC remained above the 1 million tons threshold in the background of mass production cuts and shutdown, clearly highlighting the state of demand in this market.
A key Saudi Arabia producer opens fresh PE offers to China with large reductions of $90/ton for HDPE film and $60/ton on LLDPE film. The producer emphasized that the new price cuts are to reflect the demand condition in China market alone. In terms of supply, the available quantities are rather small due to the additive supply issues.
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The continuous surge in crude oil prices spurred concerns among Southeast Asian buyers of a fresh round of price hikes ahead. Some customers are motivated to make additional replenishment, lending the market the necessary support to stay firm. Meanwhile, other buyers clinch to the constant presence of competitive Chinese cargoes (including regular and coal-based PE), believing that these parcels would cap the upside of the market in the immediate terms.
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April PVC offers from a key Taiwanese producer jumped $80/ton to China and India and $100/ton to other regions. Supply is limited. According to market sources, the maker allocated less than 50% of the usual quantity to India this month, hence, sold out within minutes from the new price announcement time.
Asian buyers are waiting for other international suppliers to open new price lists. All eyes are on the Chinese cargoes.
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