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Morning Briefing - 20 July 2023Despite the diverged pricing movement, prices below the $900/ton threshold are no longer available at the time of this report. |
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CommoPlast
Morning Briefing
20 July 2023
Brent: $79.46 (- $0.17)
WTI: $75.35 (- $0.40)
Naphtha CFR Japan: $588 (+ $20)
Ethylene CFR NEA: $750 (Stable)
Ethylene CFR SEA: $745 (Stable)
Propylene FOB Korea: $730 (Stable)
Propylene CFR China: $775 (Stable)
*Data represent closing prices of the previous trading day
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The local Chinese PVC market hit the highest levels in three months this week, riding on the improving demand outlook as Indian customers return to the market with a healthy buying appetite while the Chinese government vows to support the economy.
Nevertheless, the purchasing activities seem not strong enough to digest the local inventories. Data shows the current PVC stocks are way above the levels recorded at this time of year over the past four years. Fortunately, the export window is wide open.
The market has not witnessed such strong buying interest among Indian customers in several months and obviously, every seller would harness this opportunity at the full blast. Still, the cloudy global economic outlook coupled with the monsoon season in India might put up a hurdle to the current rally.
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Meanwhile, a key Thailand producer aggressively lifted import homo-PP offers to Vietnam by $60/ton from the previous week to above the $1000/ton threshold, taking advantage of the current upswing momentum.
On the contrary, a key Chinese trading house stepped back on their prices from $980/ton in the previous week to $925 – 940/ton based on CIF Vietnam this week.
Despite the diverged pricing movement, prices below the $900/ton threshold are no longer available at the time of this report. Having said so, it is important to note that customers showed limited interest in pursuing higher price levels citing comfortable on-hand stocks.
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