Morning Briefing - 20 Feb. 2025
CommoPlast
Morning Briefing
20 February 2025
Brent: $76.04 (+ $0.20)
WTI: $72.25 (+ $0.40)
Naphtha CFR Japan: (+ $1)
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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Mid-week PP Price Reduction
Efforts to maintain firm export homo-PP offers earlier this week proved unsustainable, as several major Chinese producers were compelled to lower prices by $5-10/ton by mid-week. The adjustment aimed to revive overseas demand, which had weakened amid declining inquiries from Southeast Asia ahead of Ramadan. Additionally, rising freight costs further constrained the viability of distant export markets.
Despite these reductions, sellers resisted deeper concessions, citing ongoing global supply constraints as a mitigating factor. In Southeast Asia, multiple production facilities remained offline, reinforcing the region’s dependence on imported cargoes to meet immediate needs.
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Minor Uptick in Demand
In Indonesia, a modest increase in purchasing activity last week prompted domestic traders to raise offers for localised Malaysian homo-PP cargoes by IDR 400,000 – 500,000/ton. The decision was supported by easing inventory pressure, the continued depreciation of the Rupiah, and a slight improvement in festive-driven demand.
However, market participants remain skeptical about the sustainability of these firmer price levels, anticipating a potential slowdown in buying activity during the Ramadan season from late February to early April.
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