Morning Briefing - 28 February 2022
CommoPlast
Morning Briefing
28 February 2022
Brent: $97.93 (- $1.15）
WTI: $91.59 (- $1.22）
Naphtha CFR Japan: $910.8 (- $11)
Ethylene CFR NEA: $1230 (- $30)
Ethylene CFR SEA: $1200 (- $30)
Propylene FOB Korea: $1210 (+ $15)
Propylene CFR China: $1175 (+ $5)
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With the crude oil market flirting with the $100/barrel mark, international PP and PE suppliers adopted a firmer stance on spot offers on the final trading day last week. Vietnamese customers have accepted Chinese yarn grade at $1320/ton CIF term, a $10/ton higher than the previous day amid expectations that further increases are possible in the coming week.
In Indonesia, a key local producer announced the third price hike in a week on Friday, 25 February, continue to shrug off the sluggish demand condition, and push customers, especially PP buyers to the import market to source more competitive Chinese materials.
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Southeast Asian buyers adopted a cautious stance to monitor the impact of the international sanctions on Russia for its aggression toward Ukraine. There have been reports among Vietnamese customers of banks here started to decline to open Letter of Credit for Russian cargoes, leading to several confirmed cancellations at the time of this report. It is also heard that Uzbekistan cargoes, which ship out from Russia's main ports are also affected. Suppliers for these origins have stopped offerings until further notice.
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In China, domestic inventories fell another 70,000 tons on Friday, 25 February 2022 thanks to the rebounded Dalian Commodity Exchange that draw arbitrage traders back to the market. In the meantime, Chinese sellers are turning attention to the abrupt uptick in demand in South America and South Africa, claiming to have achieved satisfactory deals to these markets, especially for homo-PP and LLDPE.
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