Morning Briefing - 25 April 2022
CommoPlast
Morning Briefing
25 April 2022
Brent: $106.65 (- $1.68）
WTI: $102.07 (- $1.72）
Naphtha CFR Japan: $897.1 (- $15.3)
Ethylene CFR NEA: $1300 (- $10)
Ethylene CFR SEA: $1350 (- $10)
Propylene FOB Korea: $1190 (Stable)
Propylene CFR China: $1150 (Stable)
……………………………………………………………….
The uptrend in the local China market failed to sustain toward the end of last week even though the government has eased some of the COVID-19 containment measures in the epidemic centre of Shanghai. The fact is that buyers have made comfortable replenishment previously and prefer to focus on the delivery of the orders instead.
Meanwhile, Chinese PP sellers seem less active in the export ground, especially in Southeast Asia, where offers for South Korean materials are coming down rapidly, overshadowing other cargoes. Some Chinese sellers stepped back on the export offers by $10-15/ton to $1270-1275/ton for yarn grade, FOB China to reflect the weak demand and softer local market, but overseas buyers did not respond positively.
With the Ramadan holiday fast approaching in Muslim markets that is expected to curtail demand further, Chinese suppliers might have to focus on selling locally, pushing domestic competition higher.
……………………………………………………………….
There was a mixed development in the Southeast Asia PET market throughout the previous week. While offers from Chinese suppliers registered some increases of $30-40/ton, regional buyers reported softer price lists from other sellers.
In Malaysia, Thailand PET bottle fell $125/ton compared to a month ago to $1285/ton CIF terms. Buyers tend to refrain from large purchases ahead of the Ramadan holiday.
In Indonesia, local spot offers fell below the IDR20,000,000/ton threshold ($1381/ton), excluding VAT. On the bright side, end-product buyers started to show interest in placing new PO after weeks of retreating to the sideline. Demand in the post-holiday period might continue to pick up if suppliers agree to additional discounts on resins, facilitating the end-product demand recovery.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.