Morning Briefing - 10 Feb. 2025
CommoPlast
Morning Briefing
10 February 2025
Brent: $74.66 (+ $0.37)
WTI: $71 (+ $0.39)
Naphtha CFR Japan: (+ $8)
Ethylene CFR NEA: + $5
Ethylene CFR SEA: Stable
Propylene FOB Korea: - $15
Propylene CFR China: - $5
*Data represent closing prices of the previous trading day
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The Chinese PVC market resumed trading on a weak footing, reflecting broader trends in other sectors, as manufacturers remained absent and concerns over the escalating US-China trade dispute weighed on sentiment. In the domestic market, spot offers softened by CNY 50/ton compared to pre-holiday levels, while export prices followed a mixed trajectory.
Market activity remained subdued, with participants closely monitoring fluctuations in currency exchange rates and shipping costs—key variables that could significantly influence short-term market dynamics. Meanwhile, Chinese sellers maintained cautious optimism regarding demand prospects in India, anticipating a potential resurgence in buying interest ahead of the financial year-end in March.
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The Chinese LLDPE film market continued its downward trajectory, extending losses from the pre-Lunar New Year period. According to data from CommoPlast, spot offers on an EXW China basis have now fallen to their lowest levels since late September 2024, with no immediate signs of a rebound.
Meanwhile, two new domestic plants—ExxonMobil Huizhou and Shandong Jincheng—are in the process of commissioning trial productions at their newly built PE units, which are expected to significantly increase domestic supply. These startups add to the wave of new capacities that have come online in recent months, further intensifying supply-side pressure on the market.
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