Morning Briefing - 18 Mar. 2025
CommoPlast
Morning Briefing
18 March 2025
Brent: $71.07 (á $0.49)
WTI: $67.58 (á $0.40)
Naphtha CFR Japan: â $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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Chinese Suppliers Trimmed Export homo-PP Offers
Several key Chinese PP suppliers decided to lower export homo-PP offers at the start of the week by $10-13/ton from the previous week in an attempt to retain competitiveness in an increasingly challenging market environment. The move comes as domestic demand remains weak, pushing spot homo-PP yarn prices to their lowest level in 13 months.
Deals have been achieved below the $910/ton benchmarks based on FOB China terms.
The producer’s willingness to negotiate with serious buyers signalled a proactive pricing strategy, aiming at facilitating transactions ahead of an anticipated shorter trading month in April. However, despite mounting pressure to secure transactions, exporters remain hesitant to breach the $900/ton FOB China level, pointing to persistently firm upstream costs as a key constraint.
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Malaysian Producer Sold Out LDPE in Vietnam
A key Malaysian producer has reportedly sold out its April LDPE allocation to Vietnam after implementing a $10/ton price increase late last week, marking the second consecutive month of firming prices. Supply constraints persist due to ongoing production disruptions, and the producer has now refrained from offering any HDPE cargoes to the Vietnamese market for four consecutive months.
Despite this, the broader import LDPE market has struggled to gain traction, with sluggish buying interest prevailing. Vietnamese converters remain reluctant to commit to import purchases, citing weak end-product demand and continued uncertainty over global trade tensions, which have dampened confidence in near-term market outlook.
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