Morning Briefing - 30 August 2022
CommoPlast
Morning Briefing
30 August 2022
Brent: $105.09 (+ $4.10)
WTI: $97.01 (+ $3.95)
Naphtha CFR Japan: $675 (+ $6)
Ethylene CFR NEA: $860 (Stable)
Ethylene CFR SEA: $940 (Stable)
Propylene FOB Korea: $855 (Stable)
Propylene CFR China: $870 (Stable)
*Data represent closing prices of the previous trading day
……………………………………………………………….
There have not been any major changes in the Southeast Asian market on the first trading day of the week. A key local producer in Malaysia opened September delivery offers with reductions of MYR250/ton ($56/ton) on HDPE and MYR500/ton ($112/ton) on LDPE compared to last month, reflecting the soft demand conditions and the piling pressure as PrefChem bringing all petchem units online. The producer reportedly offer to cancel contract PP cargoes to Indonesian buyers citing negative margins, market sources said.
Meanwhile, Vietnamese market participants heavily bet on the tightening PP supply ahead as a result of the mass production rate cuts among Asian producers. Local traders here are hopeful of better demand conditions in September, when schools reopen after the summer break. However, a segment of the market remained wary about the outlook, especially after the comment from the top European Central Bank official about having “little choice” but to continue tightening even if Europe’s economy tips into recession.
……………………………………………………………….
In China, Canadian LLDPE film in jumbo bag emerged on the first trading day of the week with $70/ton reduction compared to early August at well below the $900/ton threshold. No immediate deals were observed.
Chinese customers remained conservative following the renewed lockdown in Zhejiang and Wuhan. Besides, sources said that import market is now facing additional pressure from the depreciating Chinese Yuan against the US dollar.
At the moment, 1 USD = 6.90 CNY.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your Empowering Market Insight Site.