Morning Briefing - 10 May 2022
CommoPlast
Morning Briefing
10 May 2022
Brent: $105.94 (- $6.45）
WTI: $103.09 (- $6.68）
Naphtha CFR Japan: $932 (+ $22)
Ethylene CFR NEA: $1190 (Stable)
Ethylene CFR SEA: $1240 (Stable)
Propylene FOB Korea: $1150 (Stable)
Propylene CFR China: $1135 (Stable)
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The Indonesian PP and PE market remains calm on the first day returning to work following the long holiday break. Key local suppliers keep spot offers largely unchanged from the pre-holiday period in a strategic move to gauge the market reaction amid the softening regional market in the background.
Trading sentiment is weak. Manufacturers are returning to work gradually, though many decision makers are still away from their desks, which could lead to another week of quietness. Customers are in no rush to make replenishment, especially with the thin interest in China market.
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In China, the futures market dropped sharply on the first trading day of the week as investors reacted to the recent rate hikes from the FED and the Chinese government’s obdurate stance against the COVID-19 outbreak. Obviously, trading sentiment in the local ground is severely affected.
On the other hand, the resumed falling spot prices started to draw buyers back to the market although manufacturers have not been able to ship out finished goods as quickly as they planned due to the heavy port congestion. A major local trading house reported having sold 15,000 tons of PP and 10,000 tons of PE after the price adjustments.
Export PP and PE offers dropped $10/ton from the previous week as a result of the softer local market, however, sellers are not willing to offer any further reductions after achieving deals in the South Asia region.
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