Morning Briefing - 1 March 2021
CommoPlast
Morning Briefing
1 March 2022
Brent: $97.97 (+ $3.85）
WTI: $95.72 (+$4.13）
Naphtha CFR Japan: $919 (+ $8.3)
Ethylene CFR NEA: $1230 (Stable)
Ethylene CFR SEA: $1200 (Stable)
Propylene FOB Korea: $1215 (+$5)
Propylene CFR China: $1180 (+ $5)
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A key Saudi Arabia producer opened fresh PE offers to Asia with drastic increases compared to the previous month. New offers from the makers observed in Vietnam, Pakistan, and India are in the range of $1410-1440/ton for HDPE film and $1440-1460/ton for LLDPE film, all based on CIF term.
While the hikes are very much expected, considering the recent surge in the upstream ethylene costs and the rising crude oil that would eventually put producers under tremendous costs pressure; regional buyers find it difficult to accept the increases amid the soft end-product demand. In Vietnam, buyers are placing bids at well below the $1400/ton threshold for LLDPE film while showing limited interest in HDPE film. Meanwhile, market sources in Pakistan believed that the suppliers would be able to overcome the initial resistance to achieve deals due to the limited supply condition.
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Saudi oil and gas giant Aramco lifted propane contract prices to Asia for March loading by $120/ton from the previous month, in line with the surging global energy costs. Propane Dehydrogenation (PDH) operators started to feel the pinch, especially when lifting downstream PP prices is a laborious task. China's Zhongjing Petrochemical has temporarily stopped production at its 1 million tons/year PP plant while selling the excess propane and propylene, instead. For April shipment, the maker lifted export offers by $25/ton to $1270/ton FOB China.
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