Morning Briefing - 20 Mar. 2025
CommoPlast
Morning Briefing
20 March 2025
Brent: $70.78 ( $0.22)
WTI: $67.16 ( $0.26)
Naphtha CFR Japan: â $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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Chinese PET Bottle Market Snapped Three-Week Decline
The Chinese PET bottle market halted a three-week decline as major suppliers sought to implement a modest $5-10/ton increase on export offers, citing tighter supply conditions and a stronger Yuan against the US dollar. However, the durability of this upward movement remains uncertain amid shifting demand dynamics.
Data from Oanda indicates that the Yuan has appreciated by approximately 0.7% since early March, exerting pressure on exporters to adjust pricing strategies. Meanwhile, supply constraints have emerged, with several domestic producers extending planned turnarounds, raising concerns over reduced availability in the short term.
Despite these developments, the market’s ability to sustain this firmness is debatable. With pre-Eid-al-Fitr purchasing largely concluded, buying activity in key Muslim markets has slowed, casting doubt on whether demand will provide sufficient support for continued price increases.
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Malaysian HDPE Traders Leaned Toward Negotiations
Despite a largely stable local HDPE film market in Malaysia compared to the previous week, traders have shown increased flexibility in negotiations with serious buyers, aiming to facilitate sales ahead of Eid al-Fitr. Market sources indicate that cash payment buyers could obtain satisfactory discounts on deals.
However, overall market sentiment remains subdued. Weak end-product demand has kept converters from stockpiling, while discussions are increasingly centred on the likelihood of further price declines in the near term.
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