Morning Briefing - 8 April 2022
CommoPlast
Morning Briefing
8 March 2022
Brent: $100.58 (- $0.49）
WTI: $96.03 (- $0.20）
Naphtha CFR Japan: $871.3 (- $40.3)
Ethylene CFR NEA: $1380 (Stable)
Ethylene CFR SEA: $1430 (Stable)
Propylene FOB Korea: $1220 (- $5)
Propylene CFR China: $1165 (Stable)
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Struggle is the local PP and PE market in Indonesia. Traders are cutting spot prices every day this week after a key local producer halved the initial increases in contract LLDPE film price for 2Q while stepping back on homo-PP by $55/ton. The market is easing into the holiday mood, which only means that trading sentiment might continue to decline in the coming weeks.
Official Ramadan holiday in Indonesia is set from 28 April to 8 May.
Offers for May delivery PP cargoes are IDR600,000/ton lower than the prompt parcels, yet, buying interest remains limited.
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In Vietnam, it is reported that a key South Korean producer has sold out April PP allocation at $1350/ton for yarn and injection is even at a much lower level. Market players are not seeing any support for a potential rebound in the near term although several producers claimed to have achieved deals in the South African market at good price levels.
Buyers expected the import homo-PP market to hover in the range of $1300-1350/ton moving forward, which explains the reluctance to proceed with replenishment at the moment. The prolonged lockdown in China, coupled with the convulsive crude oil market continues to dent buyer confidence.
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