Morning Briefing - 22 April 2022
CommoPlast
Morning Briefing
22 April 2022
Brent: $108.33 (+ $1.53）
WTI: $103.79 (+ $1.60）
Naphtha CFR Japan: $912.4 (+ $1)
Ethylene CFR NEA: $1310 (Stable)
Ethylene CFR SEA: $1360 (Stable)
Propylene FOB Korea: $1190 (Stable)
Propylene CFR China: $1150 (Stable)
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The total PP and PE import arrivals to China jumped 23.8% and 24.9% respectively in the month of March 2022 compared to February. The drastic rebound is very much understandable, market sources said, citing the long Lunar New Year holiday in February that affected import and export activities.
Total PP imports stood at 395,000 tons and total PE imports stood at 1,352,000 tons, Chinese Customs data showed.
While month-on-month basis, the numbers appear impressive, compared to the previous year, all the listed grades fell sharply. In order to spot China’s subtle and gradual transition to less dependence on imports to meet the domestic demand, ones need to look at a longer data span.
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After the sharp price cut from a key Thailand producer earlier this week, Vietnamese customers reported having purchased South Korean homo-PP yarn at $1320/ton, based on CIF terms. This cargo is among the lowest in the market at the time of this report.
Buyers remain cautious ahead of the long Reunification and Labour Day. End-product businesses have not improved, forcing local traders to push out the on-hand stocks at competitive price levels to secure cash-flow. The downward pressure is intense, and buyers continue to watch out for additional decreases ahead.
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In related plant status news, Vietnam’s Nghi Son Refinery and Petrochemical continues to face production hiccups weeks after an unspecified technical issue hit the plant on 26 March, forcing the producer to shut the PP plant.
According to sources close to the maker, the 370,000 tons/year PP unit remains offline at the moment and might not be able to restore the normal run rate until mid-May 2022.
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