Morning Briefing - 21 Mar. 2025
CommoPlast
Morning Briefing
21 March 2025
Brent: $72.00 ( $1.22)
WTI: $68.26 ( $1.10)
Naphtha CFR Japan: $4
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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Firmer Saudi PE faced resistance in Southeast Asia
A major Saudi Arabian producer has raised April shipment offers for Southeast Asia, increasing HDPE and LLDPE film prices by $10/ton from the previous month. The price adjustment follows a sharp decline in availability ahead of a planned plant turnaround. However, the market response has been tepid.
In Indonesia, weak end-product demand and the depreciation of the Rupiah have curtailed buying interest for USD-denominated cargoes. Additionally, most Indonesian converters plan to suspend operations for 10 to 14 days during the Eid al-Fitr holiday, further reducing the incentive to build inventories.
Vietnamese buyers, meanwhile, cite the availability of more competitively priced Middle Eastern cargoes as a key reason for rejecting the higher offers. That said, with allocations reportedly slashed by nearly 50%, the Saudi producer appears to face limited pressure to offer significant discounts.
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Thai PS unexpectedly surged in Vietnam
Vietnamese buyers have reported receiving new PS offers from a major Thai producer with an abrupt $60/ton increase from the previous week, a move that has drawn sharp criticism from the market. The hike comes despite a steep decline in upstream styrene costs, which have now reached their lowest levels since July 2023.
Market participants had widely anticipated a price reduction in response to the bearish styrene trend. Instead, the unexpected increase has fueled scepticism regarding the producer’s pricing strategy.
“We opted to procure a small quantity of GPPS from a Chinese supplier at nearly $120/ton below the official price list from Thailand,” a buyer stated, underscoring growing resistance to the Thai producer’s pricing.
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