Morning Briefing - 6 April 2022
CommoPlast
Morning Briefing
06 April 2022
Brent: $106.64 (- $0.89）
WTI: $101.96 (- $1.32）
Naphtha CFR Japan: $915.8 (+ $17.5)
Ethylene CFR NEA: $1400 (Stable)
Ethylene CFR SEA: $1430 (Stable)
Propylene FOB Korea: $1250 (Stable)
Propylene CFR China: $1175 (Stable)
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The Southeast Asian homo-PP market holds largely stable since the beginning of the week in the absence of Chinese cargoes. It appears that South Korean suppliers are racing down to retake the market share after weeks of attracting limited buying attention due to the high competition from Chinese materials.
Indeed, a South Korean producer agreed to a $110-120/ton discount on homo-PP cargoes to close deals at $1360/ton for injection and $1380/ton for yarn, all based on CIF Vietnam term. As reported earlier, another South Korean producer slashed homo-PP prices late last week to $1350/ton under the condition that buyers take 1000 tons and above. Several large-scale customers are placing bids at $1320-1330/ton with no deals reported.
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Regional market participants in the PVC sector started to discuss the potential outlook for May. Expectations are that major international suppliers might introduce additional increases on the back of strong upstream costs. However, the soft demand during the fasting month and the current lockdown in China might put a cap on any potential hikes.
On the other hand, Indian customers are relatively optimistic about the demand outlook in May, claiming the uptick in buying interest from the agriculture sector. Sources said that good harvest and crop prices enrich cashflow for farmers, who would return to complete the irrigation system after delays due to the pandemic.
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