Morning Briefing - 10 Mar. 2025

CommoPlast

Morning Briefing

10 March 2025

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Chinese PET bottle Market Resumed Falling

China’s export PET market has retreated to levels last seen in December 2024, weighed down by persistent bearishness in the energy sector. Lower-end offers declined by $20/ton from the previous week, slipping further below the $800/ton FOB China threshold. Despite these discounts, buyers remained cautious, speculating over potential further reductions in upstream costs.

The broader energy market continues to deteriorate, with the international benchmark- NYMEX plunging by more than $11/barrel over seven consecutive weeks—marking their lowest levels since August 2021. This sustained downturn is driven by escalating US- China trade tensions, planned production increases by OPEC+, and a deteriorating global demand outlook.

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International Producer Hiked LLDPE film Prices to China

An international producer has raised its LLDPE film offers from multiple plant locations to China by $15/ton from the previous week, citing tightening global supply. Market participants also reported significant delays in US-origin shipments, with some cargoes facing cancellations.

However, the price hikes have met with resistance. Ample domestic supply, bolstered by the recent commissioning of new production units, has reduced buyers' urgency to accept higher import offers. Moreover, the ongoing global trade tensions have cast a shadow over packaging demand, further dampening purchasing sentiment among converters.

Meanwhile, in the local market, spot LLDPE film prices edged lower, pressured by continued declines in crude oil prices and softening futures contracts.

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