Morning Briefing - 8 September 2022
CommoPlast
Morning Briefing
08 September 2022
Brent: $88.00 (- $4.83）
WTI: $81.94 (- $4.94)
Naphtha CFR Japan: $659 (- $16)
Ethylene CFR NEA: $1000 (Stable)
Ethylene CFR SEA: $1000 (Stable)
Propylene FOB Korea: $870 (+ $10)
Propylene CFR China: $890 (+ $15)
*Data represent closing prices of the previous trading day
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International benchmarks for crude oil plunged on Wednesday, 7 September 2022 following disappointing China trade data and revived concerns over the economic outlook as the European Central Bank is expected to hike interest rates sharply on Thursday. Fears of an economic recession are intensifying. Brent dipped below the $90/barrel threshold for the first time since 8 February 2022.
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While international suppliers continued to lift import PP and PE offers to China, the upbeat buying sentiment observed in the previous two sessions has faltered. Non-dutiable Vietnamese homo-PP yarn jumped $60-70/ton from the previous day and a major Qatari maker introduced another $15/ton increase on PE parcels – the third price hike this week.
Industry experts believed that the Chinese government would maintain an unwavering stance on the Zero-COVID policies to keep the outbreak in check ahead of the National Congress of the Communist Party on 16 October. As such, the demand recovery process might face substantial obstacles.
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As ethylene costs rose sharply in recent weeks, Asian market participants started to reassess the possible PVC pricing direction for October loading cargoes. The current argument is the lacklustre demand for building materials worldwide is likely to keep any strong rebound in the PVC market in check.
Indian customers are expecting a key Taiwanese producer to open a new price list at $40-70/ton lower than the previous month.
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