Jun 29, 2022 8:03 p.m.

Morning Briefing - 20 May 2022

CommoPlast CommoPlast Asia Sdn Bhd
After more than two months of tracking a stifling down trend, the Vietnamese homo-PP market might have found the bottom as customers decided it is time for restocking.
Title

Available in

CommoPlast

Morning Briefing

20 May 2022

 

Brent:  $112.04 (+ $2.93

WTI: $112.21 (+ $2.62

 

Naphtha CFR Japan: $882 (- $36)

 

Ethylene CFR NEA: $1100 (Stable)

Ethylene CFR SEA: $1150 (Stable

 

Propylene FOB Korea: $1075 (- $10)

Propylene CFR China: $1050 (- $15)

 

www.commoplast.com     

*Data represent closing prices on 19 May 2022.

……………………………………………………………….

After more than two months of tracking a stifling down trend, the Vietnamese homo-PP market might have found the bottom as customers decided it is time for restocking. Deals are done in the range of $1220-1250/ton CIF Vietnam. An international trading house told CommoPlast, “There is no longer resistance in the market. Both traders and manufacturers have accepted the current price levels. Some of them even requested additional quantities, but our principal suppliers decided to suspend all offerings to monitor further development.”

But what motivates Vietnamese customers to return for restocking even though the prices have not met their expectations? And a bigger question is whether the market could rebound from the multi-month lows when high inflation, an unfavourable exchange rate, and still soft China market continue to keep buyers on their toes?

……………………………………………………………….

A day after a key Taiwanese producer opened June PVC shipment offers with larger than expected declines, Indian customers believed that the market is still far from the bottom levels. Not only demand is mediocre ahead of the monsoon season, but the constantly present of competitive Chinese cargoes also isn’t something the market could ignore. 

In fact, Chinese PVC cargoes (both ethylene and carbide-based) are offered at $50-60/ton below the Taiwanese maker’s price list with comfortable availability, which eases any concern over the supply condition.

……………………………………………………………….

An explosion occurred at a refinery belonging to S-Oil Corporation in Ulsan, South Korea at about 9 PM on Thursday, 19 May 2022, leaving at least one fatality and several injured. Relevant authorities are investigating the cause of the incident.

Market sources said that the explosion might not cause any physical damage to the downstream polyolefins plants at the adjacent location but might result in a temporary feedstock supply disruption. Units that might be directly affected include the 545,000 tons/year benzene plant, 1.79 million tons/year PX plant, 660,000 tons/year toluene plant, and a 200,000 tons/year ethylene plant. 

Stay tuned for further updates!

______________________________________________________________

Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast

 

 

 

About CommoPlast Asia Sdn Bhd

Your empowering market insight site.