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Morning Briefing - 18 May 2022Morning Briefing - 18 May 2022 |
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CommoPlast
Morning Briefing
18 May 2022
Brent: $111.93 (- $2.31）
WTI: $112.40 (- $1.80）
Naphtha CFR Japan: $922 (-)
Ethylene CFR NEA: $1150 (-)
Ethylene CFR SEA: $1200 (-)
Propylene FOB Korea: $1095 (-)
Propylene CFR China: $1075 (-)
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News of Shanghai reopening so far has limited influence on the purchasing activities in the Chinese PP and PE market, but it does encourage sellers to suspend any further price reductions. It is understandable for sellers to place heavy bets on a more bullish outlook in June after weeks of torrid declines and slothful demand. The other side of the market, buyers, remain cautious, fearing such optimism might turn premature given the continued flaring up of COVID-19 cases outside of Shanghai.
On the issue of the narrowing gap between local and export homo-PP yarn prices, data from CommoPlast suggested that export offers currently carry a premium of less than $25/ton over the local market, down from $45/ton earlier this month. Export-oriented sellers might find it more attractive to focus on the local front instead. From one angle, other international sellers could benefit from such development.
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In Southeast Asia, buyers are well aware of the possibility that the import homo-PP market might be nearing the bottom, but it doesn’t stop the customers from pressing for further price cuts. A couple of South Korean suppliers are collecting bids for homo-PP yarn in Vietnam at $1250/ton based on CIF term, which received a poor response as buyers here insisted on the levels of $1220-1230/ton.
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