Morning Briefing - 2 March 2022
CommoPlast
Morning Briefing
2 March 2022
Brent: $104.97 (+$7.00）
WTI: $103.41 (+$7.69）
Naphtha CFR Japan: $937.4 (+$18.4)
Ethylene CFR NEA: $1230 (Stable)
Ethylene CFR SEA: $1200 (Stable)
Propylene FOB Korea: $1215 (Stable)
Propylene CFR China: $1185 (+$5)
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Trading activities across Southeast Asia appear to have slowed down significantly on the first day of the week, especially in the PP sector. The moderate price increment of $20-30/ton for Chinese material attracted very limited buying interest to the extent some sellers received no immediate bids, players informed.
In Indonesia, manufacturers continue to sell the on-hand raw material stocks at below distribution market prices amid the lack of end-product orders. Although a key local producer here has adopted measures to offset the issue, the outcomes are not as expected. With an official price list from the maker for both homo-PP yarn and injection nearing the $1800/ton excluding VAT, Indonesian customers believed the uptrend is near the peak, now that import cargoes are arriving while the consistent presence of Chinese cargoes tapered the prospect of additional hikes ahead.
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Vietnamese buyers started to receive official notifications from banks pertaining to the cancellation of Letters of Credit for Russian cargoes following the immense international economic sanctions imposed on Russia for invading Ukraine.
It is reported that even for cargoes that have been uploaded to the vessels, but the bank has yet to receive the copy of the necessary document, the LC will not be cleared. For all cargoes that have not been uploaded, buyers are advised to proceed with the cancellation.
In the first three quarters of 2021, Russia exported more than 600,000 tons of HDPE and more than 500,000 tons of PP to the world. Under heavy sanctions, would China be able to absorb these quantities from Russia while local supply for these two grades in China has already been comfortable?
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