Morning Briefing - 21 Feb. 2025
CommoPlast
Morning Briefing
21 February 2025
Brent: $76.48 (+ $0.44)
WTI: $72.57 (+ $0.32)
Naphtha CFR Japan: (+ $2)
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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Chinese HDPE Market Gains Ground
After an extended downtrend since early November 2024, China’s local HDPE market has entered a recovery phase, with spot offers maintaining an upward trajectory for three consecutive weeks. The rebound has been driven by seasonal demand growth, particularly from the rigid packaging sector, which has prompted a series of production shifts that ultimately tightened availability of lower margin grade - HDPE film. Market sources report that transaction volumes across most HDPE grades have been satisfactory.
Looking ahead, industry participants anticipate that the market’s strength could persist, supported by near-term supply constraints. According to data from CommoPlast, six domestic HDPE plants are scheduled for maintenance in the coming quarter, a factor that may further restrict production and sustain the current price momentum.
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Saudi PE Moved Higher in Vietnam
A major Saudi Arabian producer has reportedly announced March PE shipment offers to Vietnam with price increases ranging from $20 to $50 per ton compared to the previous month, depending on the grade. The hikes come amid ongoing production disruptions, which have kept supply constrained, with LLDPE availability particularly tight.
While the price adjustments were largely anticipated, the extent of the supply shortage caught Vietnamese market participants off guard. A degree of panic buying emerged as buyers scrambled to secure alternative sources, driving a sharp increase in local market prices.
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