Mar 29, 2024 3:51 a.m.

Morning Briefing - 29 August 2022

CommoPlast CommoPlast Asia Sdn Bhd
Morning Briefing - 29 August 2022
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CommoPlast

Morning Briefing

29 August 2022

 

rent:  $100.99 (+ $1.65

WTI: $93.06 (+ $0.54)

 

Naphtha CFR Japan: $670 (- $17)

 

Ethylene CFR NEA: $860 (+ $40)

Ethylene CFR SEA: $940 (+ $40)

 

Propylene FOB Korea: $855 (Stable)

Propylene CFR China: $870 (Stable)

 

*Data represent closing prices of the previous trading day

 

www.commoplast.com     

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Over the past week, the import PE market in China collapsed with LLDPE and LDPE film hitting multi-year low levels amid the persistently dwindling demand. Some offers for irregular LLDPE film cargoes based on CFR China terms have even breached below the $900/ton threshold, raising the question if other suppliers would follow suit in the coming days. 

Meanwhile, import LDPE film based on CFR China galloped further to the low $1000-plus levels with limited buying interest.

The Chinese government announced another CNY300 billion ($44 billion) in infrastructure spending last week on top of the CNY300 billion announced at the end of June 2022. Yet, the commodity market has not responded strongly.

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In Southeast Asia, international suppliers opened September shipment offers for PE with up to three-digit reductions from the previous month. Some HDPE and LLDPE film cargoes have been concluded at below the $1000/ton mark in both Vietnam and Indonesia at the time of this report.

Meanwhile, the Southeast Asian PP market is rather mixed. In Vietnam, Thailand and Saudi Arabia homo-PP yarn inched $10-25/ton higher as the sellers claimed tightening supply amid the mass operating rate cuts. On the contrary, non-dutiable homo-PP yarn offered to Indonesia fell $30/ton week-on-week, clearly reflecting the lack of buying interest in this market.   

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