Nov 30, 2022 4:09 a.m.

Morning Briefing - 28 September 2022

CommoPlast CommoPlast Asia Sdn Bhd
In China, there are still no signs of strong pre-holiday replenishment activities. The falling Dalian Commodity Exchange forced domestic sellers to step back on the spot PP and PE prices by CNY50-100/ton from the previous session, yet transactions are mediocre.
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Morning Briefing

28 September 2022

 

Brent:  $86.27 (+ $2.21

WTI: $78.5 (+ $1.79)

 

Naphtha CFR Japan: $638 (- $10)

 

Ethylene CFR NEA: $900 (Stable)

Ethylene CFR SEA: $910 (Stable)

 

Propylene FOB Korea: $865 (- $10)

Propylene CFR China: $895 (Stable)

 

*Data represent closing prices of the previous trading day

 

www.commoplast.com     

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Several major overseas suppliers have stepped back on import homo-PP offers to Vietnam this week, effectively ending the seven rallying weeks as resistance built up, supply improved while the depreciation of the local currency hurts buying interest for imports. 

The silver lining is that buyers responded positively toward cargoes priced at the lower end of the overall price range.

In fact, a major South Korean producer managed to achieve a good number of deals after conceding to a $20/ton discount from the initial price list, at $1010/ton CIF Vietnam with 0% import duty. Other suppliers are now under the pressure to keep up with the trend in order to attract buying interest.  

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In China, there are still no signs of strong pre-holiday replenishment activities. The falling Dalian Commodity Exchange forced domestic sellers to step back on the spot PP and PE prices by CNY50-100/ton from the previous session, yet transactions are mediocre. 

Still, Chinese suppliers believed that the manageable local stock levels would prevent prices from any major changes in the near-term. Local inventories at Sinopec and CNPC’s warehouses were reported at 635,000 tons on 27 September – much lower than the psychological benchmark of 800,000 tons.

Import homo-PP, HDPE film, and LLDPE film offers from major Saudi Arabia producers remained well below the $1000/ton threshold at the time of this report.  

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