Morning Briefing - 4 March 2022
CommoPlast
Morning Briefing
4 March 2022
Brent: $110.46 (- $2.47）
WTI: $107.67 (- $2.93）
Naphtha CFR Japan: $1112.1 (+ $56.5)
Ethylene CFR NEA: $1250 ( - )
Ethylene CFR SEA: $1250 ( - )
Propylene FOB Korea: $1250 (+ $20)
Propylene CFR China: $1220 (+ $20)
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In Vietnam, deals for Saudi Arabia PE are concluded above the $1400/ton threshold for the first time since May 2015, at $1400/ton for HDPE film and $1440/ton for LLDPE film, all based on CIF term. Only a few customers are willing to make replenishment at the current prices, however, the producer does not seem too eager to make any downward adjustments claiming limited availability.
Weak end-product demand coupled with the persistent manpower issues pushed Vietnamese converters to the sidelines. Nevertheless, overseas suppliers might implement additional increases in the coming weeks to protect their bottom lines considering the strong upstream costs.
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In Indonesia, the local homo-PP market started to soften slightly this week after hitting near to $1800/ton excluding VAT, FD Indonesia terms. Trading sentiment remains sluggish due to the two holidays. Manufacturers continue to sell the on-hand raw material stocks due to no improvement in finished goods demand even though the traditionally high demand season is just around the corner.
Overseas sellers, including from South Korea have given the indications that new import offers would surge above the $1400/ton mark in the coming week. Players said that this up cycle might attract limited buying interest. Putting the weak end-product demand aside, most buyers have restocked competitive Chinese cargoes earlier.
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