Morning Briefing - 25 Feb. 2025
CommoPlast
Morning Briefing
25 February 2025
Brent: $74.78 (á $0.35)
WTI: $70.70 (á $0.30)
Naphtha CFR Japan: â $6
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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Deepening Overseas LLDPE Supply Tightness
A Saudi Arabian producer has announced its March PE shipment offers to Vietnam, raising LLDPE film prices by $40/ton while keeping HDPE film prices unchanged. The price hike aligns with market expectations, given the persistent supply constraints exacerbated by production disruptions across the Middle East and Southeast Asia. Without the emergence of alternative supply sources, the current uptrend is likely to continue in the coming months.
At the time of reporting, negotiations remain ongoing, with buyers pushing for a $20/ton reduction from the initial offers. Meanwhile, local traders have swiftly adjusted prices for localised cargoes, citing rising restocking costs as justification for their firmer stance.
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Stable Local PP and PE Market
An Indonesian producer has maintained PP and PE offers at the previous week’s levels, challenged by dwindling demand as the Ramadan season approaches. Nonetheless, the seller refrained from implementing discounts, citing manageable selling pressure following a recent round of pre-holiday restocking.
However, buyers responded with lukewarm interest, with many having completed stockpiling for March. Looking ahead to the Lebaran holiday, converters may adopt a cautious approach to procuring, anticipating a three-week operational halt instead of the usual two.
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