Morning Briefing - 07 Mar. 2025
CommoPlast
Morning Briefing
07 March 2025
Brent: $69.46 (á $0.16)
WTI: $66.36 (á $0.05)
Naphtha CFR Japan: â $8
Ethylene CFR NEA: â $15
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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Local homo-PP Market Weakened in Vietnam
Despite multiple supporting factors—including a weakened local currency and reduced supply from key exporters such as South Korea and Saudi Arabia—Vietnam’s domestic homo-PP market, particularly in the Northern region, faced a notable decline toward the end of the week. Persistent efforts to maintain firm selling prices in previous weeks yielded sluggish sales, leaving the market on tenterhooks.
“Traders are increasingly wary of softer offers from key Chinese suppliers, coupled with the continued decline in crude oil prices this week. In response, we have reduced our offers for locally produced homo-PP yarn by VND 300,000/ton from the previous week, yet buying interest remains muted,” a Hanoi-based trader reported.
Meanwhile, the Southern market held relatively stable, though trading activity has weakened noticeably amid escalating concerns over the demand outlook. Buyers remain cautious, adopting a wait-and-see approach as macroeconomic uncertainties persist.
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PVC Production Disruptions
China’s domestic PVC sector is set for notable production shifts in March and April, with ten producers set to see maintenance overhauls during the period. The combined annual capacity of these facilities stands at a few million tons, with the estimated production loss reaching upwards of 200,000 tons, depending on the duration of the individual overhauls.
However, in the export sector, market participants are cautiously assessing whether the supply shifts will translate to meaningful price support. In India’s domestic market, a domestic producer has lowered spot offers by Rs 1,500/ton ($17/ton), reflecting sluggish demand amid the Ramadan season slowdown and macroeconomic uncertainties surrounding evolving US trade policies.
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