Morning Briefing - 03 Mar. 2025
CommoPlast
Morning Briefing
03 March 2025
Brent: $73.18 (â $0.86)
WTI: $69.76 (â $0.59)
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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Sharp Hikes in Local PP, PE Prices in Indonesia
An Indonesian producer has raised spot PP and PE offers by IDR 330,000/ton ($20/ton) across nearly all grades, responding swiftly to the sharp depreciation of the Rupiah against the US dollar. According to Oanda data, the currency has weakened to IDR 16,465 per US dollar, reflecting a 1.3% decline over just three days.
Beyond currency fluctuations, tighter regional supply conditions provided additional justification for the price hike. Disruptions at production facilities across Southeast Asia and the Middle East have constrained PP and PE availability, with no immediate signs of relief.
However, the price adjustments met with muted buyer interest, as market participants cited the onset of the Ramadan holiday over the weekend. Resistance was further reinforced by comfortable inventory levels at the converters’ side and sluggish end-product demand.
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Long Son Petrochemical set for ethane storage construction
Vietnam’s Long Son Petrochemical is bracing for the installation of ethane storage tanks at its petrochemical complex, marking significant headway in its efforts to diversify its feedstock supply. Should the initiative prove successful, the producer will be the first in Southeast Asia to use United States ethane as a feedstock for PE production, as opposed to traditional naphtha.
The project reached a significant milestone with the finalisation of construction contracts awarded to China Tianchen Engineering Corporation and PetroVietnam Technical Service Corporation. The million-ton-per-year facility remains on track for completion by the end of 2027.
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