Morning Briefing - 17 Feb. 2025

CommoPlast

Morning Briefing

17 February 2025

Brent: $74.74 (- $0.28)

WTI: $70.74 (- $0.55)

Naphtha CFR Japan: (+ $13)

Ethylene CFR NEA: +$10

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: Stable

*Data represent closing prices of the previous trading day 

www.commoplast.com     

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The Chinese LLDPE film market remained under pressure in the week ending 14 February 2025, despite increased purchasing activity from the agricultural film sector. Data from CommoPlast indicated that spot offers on an EXW China basis fell to their lowest levels since late September 2024, extending a seven-week downtrend.

One of the biggest questions at the moment is whether the market has reached the cyclical bottom, considering support from the agricultural film season while overseas supply remained limited. Market participants remain cautious, as persistent concerns over new domestic production startups weigh on buyer confidence.

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Also in the LLDPE film sector, Indonesian market participants have reported a sharp increase in local offers from domestic traders over the past week, driven by tightening overseas supply. Price lists for LLDPE film rose by IDR 500,000/ton ($31/ton) from the previous week, while most other PE grades remained unchanged despite the persistent weakness of the Rupiah.

Although some buyers cautiously secured limited quantities to meet immediate production needs, largely in anticipation of further price hikes, the market showed no signs of panic buying. End-product demand remains subdued, preventing any significant recovery in purchasing activity.

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