Morning Briefing - 5 Mar. 2024
CommoPlast
Morning Briefing
05 March 2024
Brent: $82.80 (- $0.75)
WTI: $78.74 （- $1.23)
Naphtha CFR Japan: $701 (+ $14)
Ethylene CFR NEA: $950 (Stable)
Ethylene CFR SEA: $1010 (Stable)
Propylene FOB Korea: $815 (Stable)
Propylene CFR China: $845 (Stable)
*Data represent closing prices of the previous trading day
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In a surprising development, the international benchmarks for crude oil settled lower on Monday despite the effort from OPEC+ to stabilise the market by extending the voluntary output cuts until June this year. The end of the warmer-than-expected winter in the Northern Hemisphere apparently counterbalanced the supply concerns.
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In Indonesia, several key local trading houses decided to step back on their spot PP and PE offers following the announcement from Surveyor Indonesia that the government is mulling over the suspension of the implementation of the import quota mandate. On the other hand, a key local producer decided to maintain a firm stance on their weekly price list citing the support from the strong upstream costs.
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Meanwhile, the Southeast Asian ethylene market surged above the $1000/ton threshold for the first time since late January 2022 on the back of an uptick in demand and a persistent supply tightness.
According to market sources, the improving pricing optic of the downstream market, particularly for PE, encourages buyers to make additional replenishments for ethylene. Having said so, the cautiousness remains intact for the concerns over the growing resistance toward the rising PE market, which might impact the upstream ethylene sector.
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