Morning Briefing - 31 March 2022
CommoPlast
Morning Briefing
31 March 2022
Brent: $113.45 (+ $3.22）
WTI: $107.82 (+ $3.58）
Naphtha CFR Japan: $957 (- $10.8)
Ethylene CFR NEA: $1370 (Stable)
Ethylene CFR SEA: $1400 (Stable)
Propylene FOB Korea: $1250 (Stable)
Propylene CFR China: $1180 (Stable)
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Chinese suppliers continue to offer discounts on PET bottle offers to Indonesia this week amid the falling domestic demand due to the COVID-19 containment measures. The latest price list from a key producer fell $20/ton to $1300/ton CIF Indonesia. However, buying interest remains thin as manufacturers see mediocre demand for Ramadan.
There have been reports that the polyester sector in China is lowering operating rates due to high inventories, expensive feed, and slow demand. This could pressure the upstream PTA and MEG market in the near term.
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Export PVC offers from China inched $10-20/ton higher from the previous week despite the dwindling local demand as a result of the lockdown that disrupt construction activities. Traders said the higher offers are supported by the rising Dalian Commodity Exchange in recent days, not so much from the domestic demand.
Southeast Asian buyers are weighing the potential additional increases in the coming month due to tighter availability and the impact of the lockdown in China and the volatile crude oil market. Buying activities are mediocre.
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In related plant status news, a fire broke out at Maoming Petrochemical’s No. 2 cracker in Guangdong at 1.40 PM on 30 March 2022. It took the response team about half an hour to distinguish the blaze, but there were no injuries.
Following the incident, the company decided to shut the No. 2 cracker and brought forward the maintenance schedule at several downstream PP and PE units that were initially planned for May. Traders in Southern China immediately responded to the development, withholding spot offers for LDPE cargoes, expecting the shutdown to push local prices higher in the near term.
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