Nov 30, 2022 4:13 a.m.

Morning Briefing - 21 September 2022

CommoPlast CommoPlast Asia Sdn Bhd
Traders have been counting on pre-holiday replenishment activities to deplete more cargoes, now looking to the export market to achieve the sales target.
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Morning Briefing

 

21 September 2022

 

Brent:  $90.62 (- $1.38

WTI: $84.45 (- $1.28)

 

Naphtha CFR Japan: $682 (+ $19)

 

Ethylene CFR NEA: $970 (Stable)

Ethylene CFR SEA: $960 (Stable)

 

Propylene FOB Korea: $875 (Stable)

Propylene CFR China: $895 (Stable)

 

*Data represent closing prices of the previous trading day

 

www.commoplast.com     

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It is the second trading day of the week, and the trading sentiment remains relatively soft in China. Traders have been counting on pre-holiday replenishment activities to deplete more cargoes, now looking to the export market to achieve the sales target.

In fact, an increasing number of sellers are actively offering export/re-export cargoes, mostly homo-PP grade at the moment amid the heavy influx of previously purchased parcels at lower price levels. 

Meanwhile, Chinese sellers seem to prefer to keep LDPE and LLDPE film cargoes at home to meet the improving demand from the agricultural film sector, which explains the firmer stance on re-export LLDPE film offers compared to PP.  

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The Asian PVC market might be nearing the bottom as Indian customers return to the market to make replenishment, boosting trading sentiment regionwide. Key overseas suppliers implement a firmer stance on import offers to Southeast Asia claiming to have achieved satisfactory sales results in the Indian market. Many buyers here remain reluctant to increase buy ideas from the initial levels of $780-790/ton CIF terms, citing the gloomy economic outlook.

In related industry news, the Indian Ministry of Commerce and Industry announced the initiation of safeguard investigations concerning the imports of PVC suspension resins after two key domestic producers, namely Chemplast Cuddalore Vinyls Limited and DCW Limited submitted a petition to related authorities. The petitioners have requested the government to impose quantitative restrictions to regulate the maximum quantity of PVC suspension that might be imported to the country to protect domestic producers.    

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