Morning Briefing - 23 September 2022
CommoPlast
Morning Briefing
23 September 2022
Brent: $90.46 (+ $0.63）
WTI: $83.49 (+ $0.55)
Naphtha CFR Japan: $681 (- $2)
Ethylene CFR NEA: $940 (Stable)
Ethylene CFR SEA: $930 (Stable)
Propylene FOB Korea: $875 (Stable)
Propylene CFR China: $895 (Stable)
*Data represent closing prices of the previous trading day
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After much reluctance, Vietnamese buyers seem to have accepted the firming trend in the import homo-PP market with a good number of transactions recorded for both direct and re-export cargoes. Having said so, buyers remain highly selective when it comes to prices.
In fact, a South Korean producer reportedly deplete a few thousand tons of homo-PP yarn and injection after agreeing to a $10-20/ton discount from earlier this week, sending the final prices well below the $1050/ton threshold, based on CIF term.
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The Southeast Asian import PE market is firming up, but at a slower pace than sellers hope for, especially following the $70/ton dropped in upstream ethylene costs.
A key Saudi Arabia producer conceded to a $20-30/ton discount on both HDPE and LLDPE film cargoes in Vietnam while stepping back $10-20/ton in Indonesia from the initial price list despite having just 50-65% of the usual allocation.
Market sources said that overseas producers are attempting to maintain the balance between lifting prices while avoiding attracting re-export cargoes from China.
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Toward the end of the week, trading sentiment in the Chinese PP and PE market has not shown any major sign of improvement. Sellers here are anxiously monitoring the pre-holiday replenishment activities, hoping to deplete more cargoes in anticipation of soft demand conditions throughout the first half of October.
Zhongjing Petrochemical cuts export homo-PP offers for the second time this week, reducing $15/ton to $1075/ton FOB China term. The continued weakening Chinese Yuan against the US dollar and the softer-than-expected Dalian Commodity Exchange are attributed to the price decision. Besides, heightened competition from re-export cargoes also played a role.
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