Morning Briefing - 19 Mar. 2025
CommoPlast
Morning Briefing
19 March 2025
Brent: $70.56 (â $0.51)
WTI: $66.90 (â $0.68)
Naphtha CFR Japan: á $5
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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April PVC Offers Announced With Reductions
As expected, a major Taiwanese producer announced April PVC shipment offers to Asia with reductions in a widely anticipated attempt to revive persistently sluggish market conditions. However, the degree of reductions varied across regions, reflecting the producer’s strategic priorities in different markets.
In India, a $40/ton reduction generated a surge in buying interest, allowing the producer to sell out its allocation within hours—an outcome not seen in several months. While this suggests a temporary boost in demand, it remains to be seen whether the momentum is sustainable or merely a short-lived reaction to a historically low price. Market participants are now watching for signs of a broader recovery, though underlying economic pressures and global supply dynamics could continue to weigh on sentiment.
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Deepening Downtrend in China’s LDPE and LLDPE Markets
China’s local PE market remains under pressure, with LLDPE film prices extending a three-week decline to hit their lowest levels since March 2024. A combination of rising supply—driven by a wave of new startups—and persistently weak downstream demand has intensified the downturn. Even major auction platforms such as Shenhua and Shandong Yulong have struggled to generate buying interest in recent sessions, highlighting the extent of market malaise.
The weakness has also spread to the LDPE film sector. Despite supply constraints caused by production switches and reduced import arrivals, buyers have increasingly substituted LLDPE for LDPE to cut costs. This shift has further undermined demand for higher-priced LDPE cargoes, exacerbating the downward pressure on the market.
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