Morning Briefing - 7 June 2022
CommoPlast
Morning Briefing
07 June 2022
Brent: $119.51 (- $0.21）
WTI: $118.50 (- $0.37)
Naphtha CFR Japan: $868 (+ $13)
Ethylene CFR NEA: $1050 (Stable)
Ethylene CFR SEA: $1150 (Stable)
Propylene FOB Korea: $1030 (Stable)
Propylene CFR China: $1025 (Stable)
*Data represent closing prices of the previous trading day
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New import offers are limited on the first trading day of the week across the Southeast Asia region; however, international suppliers unquestionably plan to maintain a firmer stance on the new price list, awaiting further development in China.
In the meantime, trading sentiment in China frustratingly takes time to recover without any breakthrough price increases since Shanghai eases the COVID-19 lockdown on 1 June. Nevertheless, Chinese suppliers prefer to hold on to the stocks on hand, waiting for the local market to firm up further instead of pouring the allocations to the export market at low prices. “The uptrend has just only started. Coupled with factors such as strong upstream costs and hefty government stimulus, we see a good chance of recouping the previous losses locally. Anyway, overseas customers can’t accept the new prices, especially with the rising shipping costs,” a PP producer told CommoPlast.
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In related industry news, the first freight train carrying various goods including 900 tons of PVC from Chongqing Tuanjie Central Station in China has arrived at the Yen Vien Station, in Ha Noi, Vietnam, kick-starting the “Railway Express” method for customs clearance between the two countries.
Under the Railway Express model would save 24 hours of customs clearance time, shortens the overall running time by 1-2 days, and saves more than CNY200 per box.
Statistics wise, Vietnam is the second-largest importer of Chinese PVC in the first four months of 2022, totalling nearly 75,000 tons. With a more efficient mode of transportation, would Chinese materials, including PP and PE arrive Northern Vietnam market more?
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The Indian Ministry of Finance has set the final decision not to impose anti-dumping duty on the import of LDPE from Saudi Arabia, Singapore, Thailand, and the USA as previously recommended by the Ministry of Trade.
The decision comes as governments around the world scramble to support local industries amid the rising energy and input costs.
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