Morning Briefing - 6 May 2022
CommoPlast
Morning Briefing
06 May 2022
Brent: $110.9 (+ $0.76）
WTI: $108.26 (+ $0.45）
Naphtha CFR Japan: $897 (- $3)
Ethylene CFR NEA: $1210 (Stable)
Ethylene CFR SEA: $1260 (Stable)
Propylene FOB Korea: $1150 (Stable)
Propylene CFR China: $1135 (Stable)
……………………………………………………………….
Chinese market participants returned from the long Labour Day holiday continue to hold a cautious stance amid the lingering concerns over the outbreak in Beijing despite the government's promise to support the economy.
The local PP and PE stocks build up 165,000 tons throughout the holiday to 885,000 tons – a level that players deemed manageable. Spot offers, therefore, rose CNY50-150/ton regardless of the soft buying interest.
Chinese suppliers also attempted to lift export PP and PE offers by $10-20/ton to reflect the strong sentiment on the Dalian Commodity Exchange. However, with the absence of buyers in Muslim markets, the increases face stiff resistance.
……………………………………………………………….
The Southeast Asian market remains largely calm as a large of Malaysian and Indonesian customers are still away for the Eid Mubarak holidays. Meanwhile, the downtrend persists in Vietnam with deals for import homo-PP yarn and injection from Thailand and South Korea concluded with discounts.
On the bright, Vietnamese customers started to show interest in making replenishment for June and July arrivals, who previously preferred to wait for prices in the range of $1250-1280/ton CIF Vietnam, started to come back to the market.
Partially attributed to the improving buying interest is news of the shutdown of Hyosung Vina Chemical’s No. 1 PP line. It is uncertain on the restart schedule, but Vietnamese buyers informed CommoPlast that the producer has suspended all spot offers after closing deals at VND33,000,000/ton including VAT ($1306/ton excluding VAT).
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.