Morning Briefing - 7 March 2022
CommoPlast
Morning Briefing
7 March 2022
Brent: $118.11 (+ $7.65）
WTI: $115.68 (+ $8.01）
Naphtha CFR Japan: $1023.1 (- $89.0)
Ethylene CFR NEA: $1260 (+ $10)
Ethylene CFR SEA: $1260 (+ $10)
Propylene FOB Korea: $1250 (-)
Propylene CFR China: $1220 (-)
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The international benchmarks for crude oil ended the trading session on Friday, 4 March 2022 with more than 7% gains as the market shunned Russian barrels. The Asian market rose an additional 10% on the opening hours on Monday, sending Brent above the $130/barrels on the possibility of the US and the EU banning Russian products and bullish news over the weekend, with Saudi Arabia lifting prices for all regions and production fall in Libya.
While the situation remains highly fluid, industry experts expected a severe impact on the global economy.
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Two key Southeast Asian producers lifted import LDPE film offers to Indonesia to above the $1800/ton threshold, pushing the market to the highest levels since April 2021. According to market sources, Besides the cost-push issues, swing plants might find EVA more attractive could encourage production switches. Customers are looking at the prospect of tighter LDPE supply moving forward.
South Korean EVA offers surged above the $3000/ton threshold in China in the week ending 4 March, and the seller has expressed the intention to introduce additional increases in days to come to reflect the upstream situation.
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Over the weekend, the Chinese National People’s Congress set a growth target for 2022 at 5.5% - a number many economists deemed highly ambitious that required aggressive infrastructure spending, further interest rate cuts, and more stimulus. The government has also declined to ‘set hard target’ on energy usage as seen in 2021.
Players in the petrochemical sector are waiting for the positive effects on the market to unfold.
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