Morning Briefing - 13 April 2022
CommoPlast
Morning Briefing
13 April 2022
Brent: $104.64 (+ $6.16）
WTI: $100.60 (+ $6.31）
Naphtha CFR Japan: $888.8 (- $5.8)
Ethylene CFR NEA: $1350 (Stable)
Ethylene CFR SEA: $1400 (Stable)
Propylene FOB Korea: $1190 (- $20)
Propylene CFR China: $1140 (- $10)
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Key contracts for May delivery on Dalian Commodity Exchange rebounded sharply on the second trading day of the week after the Chinese government eased COVID-19 containment measures, sparking hope that demand would come back strongly.
Over the past several trading days, Chinese buyers have been actively sourcing local cargoes after suppliers agreed to discounts. Data from CommoPlast showed that local PP and PE prices in China are the lowest in the region at the moment, giving Chinese manufacturers a competitive advantage over others. The soft local market also poses a challenge for overseas sellers.
A major trading house in the country reported having sold 21,000 tons of PP and 20,000 tons of PE, highlighting the returning of buyers. An underlined issue at the moment is still the transportation bottleneck.
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Southeast Asian buyers are seriously lacking buying interest. Major markets including Indonesia and Malaysia are entering the holiday mood while Vietnamese buyers are well covered until mid to end of May, allowing them time to pressure sellers to step back on selling prices.
Buy ideas for import homo-PP among Vietnamese customers are well below the $1350/ton, based on CIF terms.
Middle Eastern producers aim to rollover PE offers for May shipment. Would the market be able to accept? Everyone is on the wait-and-see.
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