|
|
Morning Briefing - 27 February 2023Chinese industrial sector has been recovering at a much slower pace and unevenly compared to the service sector following the removal of all COVID-19 restrictions. |
|
CommoPlast
Morning Briefing
27 February 2023
Brent: $83.16 (+ $0.95)
WTI: $76.32 (+ $0.93)
Naphtha CFR Japan: $721 (+ $14)
Ethylene CFR NEA: $960 (+ $20)
Ethylene CFR SEA: $970 (+ $20)
Propylene FOB Korea: $940 (- $35)
Propylene CFR China: $955 (- $40)
……………………………………………………………….
Over the past week, a key Saudi Arabia producer decided to set final LLDPE film prices to Vietnam at $1050-1060/ton based on CIF term – shrugging off the supply tightness amid heavy maintenance shutdown season and rising upstream ethylene costs.
The price decision was deemed to retain customers from the new capacity in Southeast Asia while fending off the heavy presence of re-export cargoes from China. Data from CommoPlast showed that in the week to 24 February, re-export LLDPE film from China stood in the range of $1080-1120/ton CIF Vietnam, depending on the origin.
……………………………………………………………….
In China, the market was elevated by expectations that the government would introduce more pro-growth measures during the National People’s Congress on 5 March 2023.
Spot offers for both PP and PE inched slightly higher, yet market participants remained largely cautious. Chinese industrial sector has been recovering at a much slower pace and unevenly compared to the service sector following the removal of all COVID-19 restrictions. Would any potential economic stimulus packages announced by the government fall short of market expectations, the downtrend is likely to resume.
______________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
About CommoPlast Asia Sdn Bhd
Your Empowering Market Insight Site
