Morning Briefing - 4 April 2022
CommoPlast
Morning Briefing
04 April 2022
Brent: $104.39 (- $0.32）
WTI: $99.27 (- $1.01）
Naphtha CFR Japan: $888.5 (- $35)
Ethylene CFR NEA: $1400 (Stable)
Ethylene CFR SEA: $1430 (Stale)
Propylene FOB Korea: $1250 (Stable)
Propylene CFR China: $1175 (Stable)
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Toward the end of last week, import homo-PP originated from China and South Korea came down rapidly, with deals concluded in the range of $1350-1360/ton CIF Vietnam, reiterating the growing sales pressure among suppliers amid the persistently weak demand condition.
The transactions inevitably drag offers for other origins down. In fact, Thailand homo-PP was set at $1470/ton CIF Vietnam toward the end of the previous week, down $60/ton from the initial offers, and $140/ton from the beginning of March.
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Remember the week before when Indonesian customers rushed to the distribution market to secure additional cargoes after rumours of a three-digit hike in 2Q contract prices? True enough that a key local producer announced contract prices with $120/ton increased on LLDPE film, $60/ton on HDPE film, and $160/ton on homo-PP yarn and injection.
But customers have made comfortable replenishment. Several small to medium scale converters told CommoPlast they are planning to stop production as early as the end of this week to let workers go for the Ramadan holidays due to the lack of end-product demand. A survey showed the average Eid al Fitr holiday this year among Indonesian manufacturers is about 2.5 weeks, much longer than the usual 7-10 days previously. The short-term demand outlook in this market is not so bullish.
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