Morning Briefing - 24 March 2022
CommoPlast
Morning Briefing
24 March 2022
Brent: $121.6 (+ $6.12）
WTI: $114.93 (+ $5.66）
Naphtha CFR Japan: $997 (+ $31.4)
Ethylene CFR NEA: $1350 (Stable)
Ethylene CFR SEA: $1350 (Stable)
Propylene FOB Korea: $1260 (Stable)
Propylene CFR China: $1180 (Stable)
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Following a strong wave of re-export in the previous week, Chinese buyers started looking for suitable PE cargoes for replenishment. So far, a good number of transactions for metallocene PE is observed at $1600-1610/ton for Southeast Asian origin, based on CFR China.
Apparently, import offers for mPE have not changed for a couple of weeks and any cargoes priced at higher levels would face stiff resistance.
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Trading sentiment in the Southeast Asian homo-PP market remained sluggish and cargoes priced at the upper end of the overall price range are now facing stiff competition. Buyers flock to attractive Chinese cargoes to make the necessary replenishment amid the rising crude oil prices.
In fact, an international trading house reported having received very poor responses from Indonesian buyers when collecting bids for non-dutiable ASEAN homo-PP at $1490/ton CIF Indonesia. In the meantime, deals for Chinese yarn are done in the range of $1385-1400/ton with the same term.
A segment of the market believed that there could be a V-shape rebound once China put the current outbreak wave under control, which allows manufacturers to restore normal operating rates while supply has curtailed from the mass production rate cuts.
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