Morning Briefing - 20 June 2022
CommoPlast
Morning Briefing
20 June 2022
Brent: $113.12 (- $6.69）
WTI: $109.56 (- $8.02)
Naphtha CFR Japan: $840 (+ $41)
Ethylene CFR NEA: $990 (- $20)
Ethylene CFR SEA: $1100 (- $50)
Propylene FOB Korea: $1025 (Stable)
Propylene CFR China: $1030 (Stable)
……………………………………………………………….
The domestic spot PP and PE market in China made a surprising comeback during the final trading hours last Friday as suppliers agreed to additional discounts. Asides from the satisfactory sales results, the reductions mark the seventh consecutive days of decline that started to cause concerns among small to medium-scale traders as warehouses in the Southern region reach capacities.
A major domestic trading house reported having sold 30,000 tons for both PP and PE in the second half of the trading day told CommoPlast that buyers remained price-sensitive and would only accept cargoes at the lower end of the overall price range.
……………………………………………………………….
Once again, expectations on July PVC shipment offers have evolved. With the plunged in Chinese carbide-based PVC offers and the weak demand across Southeast Asia, the downward pressure is rather substantial. Players are now expecting $30-50/ton reduction on the new price list from the Taiwanese major.
Across Southeast Asia, manufacturers reported lower operating rates due to the sluggish end-product business. “We plan to make only small purchases this time, preferably at prices below the $1200/ton threshold for Chinese carbide based. We are operating at 50% capacity as the demand for pipe is very weak,” a Vietnamese converter added.
Export offers for Chinese carbide-based PVC fell below the $1100/ton threshold late last week, to $1090/ton FOB China.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site.