Morning Briefing - 11 Mar. 2025

CommoPlast

Morning Briefing

11 March 2025

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Mixed Adjustments in China’s Export PP Market

China’s export homo-PP market opened the week on a mixed note, reflecting ongoing volatility in global trading conditions. Two producers raised offers by $5/ton, citing the Yuan’s 0.5% appreciation against the US dollar within a week. Conversely, another producer applied a $5/ton discount to stay competitive and stimulate sales for April shipments.

Despite a cautious market sentiment, some sellers expressed measured optimism about a potential near-term demand shift, supported by increased inquiries for post-Ramadan shipments. However, market participants remained cautious, evaluating the sustainability of this demand amid escalating global trade tensions.

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Lotte Chemical Corporation to Divest Stakes in Indonesian Subsidiary

Lotte Chemical Indonesia (LCI) is poised for a significant structural shift as its parent company, South Korea’s Lotte Chemical Corporation (LCC), moves to divest a 25% stake in the company. The planned divestment aligns with LCC’s strategy to strengthen its financial position amid persistent challenges in the petrochemical sector, including weak demand, rising feedstock costs, and margin compression.

If completed, the transaction would reduce LCC’s ownership in LCI from 49% to 24%. Meanwhile, Malaysia’s Lotte Chemical Titan, which holds a 51% stake in LCI, has declined LCC’s offer to acquire the shares for USD 462.7 million.

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