Morning Briefing - 12 April 2022
CommoPlast
Morning Briefing
12 April 2022
Brent: $98.48 (- $4.30）
WTI: $94.29 (- $3.97）
Naphtha CFR Japan: $894.5 (+ $6.5)
Ethylene CFR NEA: $1350 (- $20)
Ethylene CFR SEA: $1400 (Stable)
Propylene FOB Korea: $1210 (Stable)
Propylene CFR China: $1150 (- $5)
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Over the weekend, the total PP and PE stocks in China piled up 70,000 tons to 940,000 tons as of 11 April 2022. However, unlike the sluggish trading sentiment on the Dalian Commodity Exchange, local sellers reported having achieved a satisfactory number of deals after stepping back on spot PP and PE offers. As such, the stock buildup over the weekend might not pose a big challenge for Chinese sellers.
Obviously, the lower prices are drawing buyers in the non-lockdown areas back to the market amid growing expectations of aggressive stimulus from the government after the outbreak is under control will boost demand.
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In related plant status news, Malaysia’s PrefChem is planning to restart its troubled petrochemical complex this May after more than two years of staying offline following an explosion on 16 March 2020.
Meanwhile, a series of PP and PE plants in India are either cutting operating rates or shutting down this April – May for maintenance, which would curtail both local and export availability. Yet, the plunging crude oil prices coupled with the extended lockdown in China overshadow the supply concerns at the moment.
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