Morning Briefing - 19 Feb. 2025
CommoPlast
Morning Briefing
19 February 2025
Brent: $75.84 (+ $0.62)
WTI: $71.85
Naphtha CFR Japan: (- $3)
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Taiwanese Producer Opened March PVC Offers
A major Taiwanese exporter has announced its March PVC offers with stable to slightly lower pricing, in line with market expectations. The most notable adjustment was a $20/ton reduction for India, while offers to China and Southeast Asia remained unchanged.
Initial responses from the key markets were muted. Indian market participants reported comfortable local availability that stemmed from a steady influx of previous purchased cargoes. Buyers could secure localised material at prices even lower than the Taiwanese producer’s latest offers. The volatility in currency exchange rates has further dampened interest in imports.
Meanwhile, market sentiment across Asia remains cautious, with buyers reluctant to build inventory ahead of the Ramadan season, raising concerns about near-term demand prospects.
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Malaysian LDPE Firmed Up in Vietnam
A Malaysian producer surprised the market by raising March LDPE offers to Vietnam by $20/ton, seemingly overlooking the depreciation of the Vietnamese Dong against the US dollar. The price hike was justified by supply constraints resulting from ongoing production disruptions and persistent margin pressures.
However, the move was met with skepticism. Buyers pointed to weak demand in downstream sectors, questioning the rationale behind the increase. Looking ahead, converters signaled their intent to limit purchases from the producer while seeking more competitive alternatives in the international market.
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