Morning Briefing - 04 Feb. 2025

CommoPlast

Morning Briefing

04 February 2025

Brent: $75.96 (+ $0.29)

WTI: $73.16 (+ $0.63)

Naphtha CFR Japan: -

Ethylene CFR NEA: -

Ethylene CFR SEA: -

Propylene FOB Korea: -

Propylene CFR China: -

*Data represent closing prices of the previous trading day 

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Chinese petrochemical giant Hainan Yisheng has halted operations at two of its PET plants in recent weeks for scheduled maintenance, aligning with concurrent shutdowns at upstream PTA units. The timing of these overhauls is expected to significantly tighten spot availability, exacerbating supply concerns at a pivotal juncture for the PET bottle sector.

Typically, demand for PET bottles strengthens toward the end of the first quarter as the industry ramps up preparations for the summer season. With the Chinese market set to reopen on 5 February, market participants are closely watching buyer reactions to these shutdowns, which could set the tone for near-term market direction.  

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The global market experienced heightened volatility in recent days following the US government's abrupt announcement of a 25% tariff on imports from Canada and Mexico, alongside a 10% levy on Chinese imports—only to later defer the implementation for the first two.

With most Chinese market participants still absent due to the Lunar New Year holiday, the immediate impact of this latest trade barrier on the petrochemical sector remains uncertain. However, industry experts warn that prolonged uncertainty and protracted negotiations could erode market confidence, regardless of whether the 10% tariff on Chinese imports is ultimately suspended. 

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