Morning Briefing - 13 Sept. 2023
CommoPlast
Morning Briefing
13 September 2023
Brent: $92.06 (+ $1.42)
WTI: $88.84 (+ $1.55)
Naphtha CFR Japan: $711 (+ $14)
Ethylene CFR NEA: $825 (Stable)
Ethylene CFR SEA: $865 (Stable)
Propylene FOB Korea: $805 (+ $5)
Propylene CFR China: $850 (+ $5)
*Data represent closing prices of the previous trading day
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The Asian naphtha market is now at six-month highs on the back of surging crude oil prices that exert strong upward pressure on the ethylene and propylene market. At the moment, the naphtha–ethylene spread has improved but remained way below the breakeven benchmark of $300-350/ton. As much, most Asian naphtha crackers continue to operate at below the optimal rates.
Sources reported soft demand for ethylene and propylene citing the lack of buying interest among PP and PE plants and the recent upswing is very much driven by strong crude oil costs.
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The Chinese LDPE film market seems to have entered a stabilization period as sellers struggle to implement any further increases for two weeks in a row. Nevertheless, market participants do not expect any large drop in the foreseeable terms citing the still tight availability and strong upstream costs.
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