Morning Briefing - 11 April 2022
CommoPlast
Morning Briefing
11 April 2022
Brent: $102.78 (+ $2.20)
WTI: $98.27 (+ $2.23)
Naphtha CFR Japan: $888 (+ $16.8)
Ethylene CFR NEA: $1370 (- $10)
Ethylene CFR SEA: $1400 (- $30)
Propylene FOB Korea: $1210 (- $10)
Propylene CFR China: $1155 (- $10)
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The last week was relatively short for Chinese sellers due to the Tomb Sweeping Festival, however, throughout the three trading days, the total PP and PE inventories at Sinopec and CNPC’s warehouses digested 50,000 tons to 870,000 tons as of Friday, 8 April 2022.
Chinese traders claimed having achieved satisfactory deals in non-lockdown areas while remaining bullish that demand would pick up strongly once the outbreak is under control. The million-dollar question is when will the current COVID-19 wave be curbed? The number of new infection cases is climbing and spreading rapidly in/to other provinces, prompting strict movement controls that tighten the delivery bottleneck.
At the time of this report, Chinese suppliers have yet to agree to large discounts on both local and export offers, even though the nearby Southeast Asian market is sliding. Would sharper price reductions from Chinese sellers be a matter of time, too?
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