Morning Briefing - 14 Mar. 2025

CommoPlast

Morning Briefing

14 March 2025

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Chinese LLDPE Market Extended Downtrend 

China’s LLDPE film market remained under pressure, recording its second consecutive weekly decline of CNY 50/ton ($7/ton). Since peaking in late December, prices have plunged by a total of CNY 825/ton ($114/ton), weighed down by a bearish macroeconomic outlook and persistent buyer caution amid concerns over rising domestic supply.

In Southern China, weak sentiment in the spot market has prompted traders to explore forward selling, with shipments offered as far ahead as September. However, even discounts of CNY 100/ton ($14/ton) have failed to stimulate buying interest, reflecting deep-seated market hesitation.

Looking ahead, market participants remain cautious as ExxonMobil Huizhou prepares to bring its ethylene cracker online by month-end, paving the way for the start of commercial production at its LLDPE units. 

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Chinese PVC Offers to Malaysia Softened

Chinese ethylene-based PVC offers to Malaysia softened by $15/ton from the previous month, reflecting broader weakness across global PVC markets. Pressures arose from more cautious buying, especially amid expectations of additional stock inflows and a seasonal demand lull during the Ramadan holiday.

The decline came ahead of a closely watched April pricing announcement from a key Taiwanese producer, reinforcing expectations of further downward adjustments. In Malaysia, market participants pointed to holiday-related slowdowns, ample supply, and persistent demand weakness as key factors weighing on sentiment.

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