Morning Briefing - 14 September 2022
CommoPlast
Morning Briefing
14 September 2022
Brent: $93.17 (- $0.83）
WTI: $87.31 (- $0.47)
Naphtha CFR Japan: $669 (+ $16)
Ethylene CFR NEA: $1000 (Stable)
Ethylene CFR SEA: $1000 (Stable)
Propylene FOB Korea: $875 (+ $5)
Propylene CFR China: $895 (+ $5)
*Data represent closing prices of the previous trading day
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The Chinese PP and PE market resumed trading on a strong note following the long weekend holiday. Spot homo-PP and HDPE film added CNY50-150/ton from last week while LLDPE and LDPE film gained as much as CNY200/ton.
Purchasing activities were mediocre as buyers started to resist the higher prices. Nevertheless, suppliers might continue to leverage the firming upstream costs and lower availability stemming from the reduced operating rates to keep offers firm in the near term.
Chinese traders are expecting stronger replenishment activities toward the end of September before the market takes off for the Golden Week from 1 – 10 October.
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A major Taiwanese PVC producer slashed October shipment offers by $110/ton to Indian and Southeast Asia markets as there is no sign of an uptick in demand even though the monsoon season is ending.
Shrugging off the rising upstream ethylene and carbide costs, Southeast Asian customers expressed buy ideas below the $800/ton threshold, citing the darkening economic outlook would continue to weigh on the global housing market.
On the other hand, Indian customers are surprised by the Taiwanese maker’s price decision. Sources said the latest price list at $920/ton CIF India, with the addition of a $10/ton discount for large purchases – is indeed competitive. Still, buying activities remained ‘so-so’.
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