US cannot join, there is so many antitrust law in US. The 3 major competition law under dept of justice, sherman-clayman-FTC. There is no way trump can get enough support to repeal clauses of those laws. Whats more likely is US will strongarm saudi so they will negotiate with russia.
For pchem material stocks of LNG gas will get cheaper so thats good because korea gas already asked petronas to defer shipment due to demand. With no place to go petronas will feed pchem. Short term cash squeeze, but over time its positive.
SINGAPORE (ICIS)--China’s domestic polypropylene (PP) prices have rallied since end-March, driven by spiking demand for downstream face masks amid the coronavirus pandemic, while supply of some grades has tightened partly due to scheduled plant turnarounds.
On 10 April, spot prices of PP yarns, injections and low melt-index block copolymers in east China stood at yuan (CNY) 7,425/tonne; CNY7,500/tonne and CNY7,650/tonne, respectively, according to ICIS data.
The prices have rebounded by nearly CNY1,142/tonne or an average of 18% from lows recorded in end-March, the data showed.
ICIS Editorial Chart goes here
Overseas demand for face masks has been surging as global coronavirus infections reached 1.7m, with the death toll at above 100,000. The outbreak is believed to have emerged late last year in Wuhan in central China.
With a growing number of people across the world wearing face masks as protection against infection from the flu-like virus, demand for PP fibres was consequently boosted.
PP fibres with a melt index of 35-40 make up the outer layer of face masks, which typically comprise two layers of fibres and middle melt-blown material, according to experts.
For major producer Dushanzi Petrochemical, offers for its S2040 PP fibres reached as high as CNY25,000/tonne, according to market sources.
Booming demand and high margins have prompted China’s domestic polyolefin producers to start switching to producing PP fibres since late March.
A total of 28 domestic PP plants in the country with a total capacity of 6.53m tonnes/year - about 26% of China’s total capacity for the polymer - have made the switch to producing high melt-index PP fibres, according to industry sources.
More production of PP fibres has squeezed supply for other general-purpose grades further, triggering the price uptrend.
A number of PP plants in China are due for maintenance in the second quarter.
Up swing is not sustainable, i have to admit i miss the rebound boat. Pchem make me a feel bitter. But i still have topglove to keep me happy. Lose some win some.
(Reuters) - Energy traders fled from the expiring May US oil futures contract in a frenzy on Monday, sending the contract into negative territory for the first time in history, as barely any buyers are willing to take delivery of oil barrels because there is no place to put the crude.
May US crude futures careened into negative territory about 20 minutes before the end of trading, falling to minus US$8 a barrel, down 146%.
With demand down 30% worldwide due to the coronavirus pandemic, and the main US storage hub in Cushing, Oklahoma expected to fill up in a matter of weeks, very few want to be stuck with oil barrels that they have to take delivery on at some point during May.
"The people who are long are desperate to get out," said Phil Verleger, a veteran oil economist and independent consultant.
i think it is low already...the next question is how long will it stay at this range. If it stays at this range till end of the year.....behold the fall of the goliath.
The problem is the US wants a free ride insisting on other nations cutting. Texas said they will go on producing the oil. Saudi Arabia continue to give deep discount to keep their market share. China, the biggest oil consumer n with the biggest storage buys from Russia n Saudi Arabia. The solution is "shared prosperity" not supremacy. Mexico, which hedged their oil in the futures market, has locked on the price of USD600 n is reluctant to cut their production further.
International oil prices rebound following Trump warning
April 22, 2020 8:09 pm by Myles McCormick and Joe Rennison in London, Hudson Lockett in Hong Kong and Matthew Rocco in New York
Brent bounces back from two-decade low after US president takes aim at Iranian vessels
Oil prices rebounded on Wednesday after Donald Trump stoked Middle East tensions, saying that he had ordered US warships to “shoot down and destroy” Iranian vessels if they posed a threat. The US president’s intervention sent Brent crude back above $20 a barrel after the international benchmark had tumbled to its lowest level since 1999 on concerns over the collapse in global oil demand. The declaration from Mr Trump also helped buoy the high-yield bond market, which is heavily exposed to the fate of energy companies. BlackRock’s iShare high-yield bond exchange traded fund, known by its ticker HYG, rose 1 per cent, having dipped 1.8 per cent on Tuesday.
“I have instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea,” Mr Trump wrote in a tweet. The prospect of renewed tensions in the Middle East gave crude a lift during a week where prices have struggled to contend with an evaporation in demand triggered by the coronavirus pandemic.
Brent rose as high as $22.45 a barrel and settled at $20.37, up more than 5 per cent on the day. The energy sector helped lead a rally on Wall Street that sent the benchmark S&P 500 up 2.3 per cent following two days of falls. The tech-heavy Nasdaq Composite closed up 2.8 per cent. West Texas Intermediate, the US marker, rose 19 per cent to $13.78 a barrel. It almost halved during the previous session and earlier in the week fell into negative territory for the first time as producers were forced to pay buyers to take oil off their hands ahead of the expiry of futures contracts.
Brent crude remains down about 27 per cent so far this week. Oil production levels have remained robust even as the virus destroys demand, creating a supply glut. An unprecedented cut of almost 10 per cent of global supply by Opec and its allies will take effect next month, but traders worry it is not enough to offset the collapse in consumption. The head of the International Energy Agency on Tuesday called for the output reductions to be expedited and deepened. Opec members met by phone overnight, but there was no sign they would change their plans.
The U.S. Energy Information Administration is suggesting there is notional space for just another 16 million barrels at the country’s storage hub for crude oil in Cushing, Okla., and that this could fill up by next week based on the average build trends seen this month. 3 hours ago (Apr 22, 2020 05:50PM ET)
Trump's tweet doesn't change the situation much. Russia will take the opportunity to pump n pump.
Government loss Billion due to crude oil dropped. EPF will losses million as ppl withdrawn money and support oil and gas company . malaysia soon will announce loan from IMF.
IMF ? IMF is a US-centric UN agency. In the 1997 Asian crisis, IMF demands a hike in interest rates, purge the banks, purge the workers, purge the business, purge everything .... Luckily, we choose to take Paul Krugman's advice.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
mobidick
131 posts
Posted by mobidick > 2020-04-09 10:32 | Report Abuse
US cannot join, there is so many antitrust law in US. The 3 major competition law under dept of justice, sherman-clayman-FTC. There is no way trump can get enough support to repeal clauses of those laws. Whats more likely is US will strongarm saudi so they will negotiate with russia.
For pchem material stocks of LNG gas will get cheaper so thats good because korea gas already asked petronas to defer shipment due to demand. With no place to go petronas will feed pchem. Short term cash squeeze, but over time its positive.