Morning Briefing - 27 Feb. 2025

CommoPlast

Morning Briefing

27 February 2025

____________________________________________________________________

Mixed Trajectory

The Asian LLDPE film market exhibited mixed movements over the past week, with diverging fundamentals across key regions. While ample supply and sluggish demand pressured prices in China and India, constrained availability lent support to the Southeast Asian market.

In China, the domestic spot market posted a marginal rebound of CNY 50/ton last week after six consecutive weeks of declines. However, the upward momentum proved short-lived as concerns over rising domestic supply quickly overshadowed the impact of reduced overseas inflows. Market sentiment was further dampened by the news that ExxonMobil Huizhou had achieved on-spec production at one of its LLDPE lines, prompting buyers to retreat and reassess near-term prospects.

Meanwhile, in Southeast Asia, key Saudi Arabian producers raised March shipment offers by as much as $40/ton from the previous month, citing severe supply constraints. The Vietnamese market showed the strongest buying interest, with participants willing to accept offers above the $1,000/ton threshold.

The contrasting price trends raise questions about the sustainability of the upward trajectory in Southeast Asia, particularly with the Ramadan season approaching—a period that could influence both demand patterns and supply logistics.

___________________________________________________________________ _

Chinese Export PET bottle Softened

China’s export PET bottle market has lost momentum after a two-week uptrend, as demand weakens with key Muslim markets entering the Ramadan season. Prices have eased by $10–20/ton from the previous week, bringing the market floor below $800/ton FOB China.

Looking ahead, market participants remain cautious about further price declines, citing potential supply shifts. Notably, several domestic production facilities are scheduled to restart in early March, raising concerns over increased availability and potential downward pressure on prices.

____________________________________________________________________

Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast