Morning Briefing - 25 Mar. 2025
CommoPlast
Morning Briefing
25 March 2025
Brent: $73.00 ( $0.84)
WTI: $69.11 ( $0.83)
Naphtha CFR Japan: Stable
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: â $10
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Saudi major firmed up PE offers to Southeast Asia
A leading Saudi PE producer has implemented a $10-20/ton price hike on its April offers to Southeast Asia, marking the third consecutive month of firming. The producer attributed the increase to persistent supply constraints, alleging production disruptions at its own facilities while also pointing to planned shutdowns at major regional plants.
In Vietnam, buyers questioned the feasibility of the hike, particularly given the Dong’s 0.7% depreciation against the US dollar over 12 consecutive days. With currency risks mounting, procurement strategies have shifted toward the local market, where buyers perceive lower exposure to exchange rate risks.
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Asian Propylene Plunged for Seven Consecutive Weeks
The Asian propylene market extended its decline into a seventh consecutive week, with CFR China prices plunging by $42.5/ton since late January, as of 21 March 2025. Supply constraints in South Korea and Southeast Asia failed to offset the market’s bearish sentiment, which remained anchored in weak Chinese demand.
In the downstream homo-PP market, Chinese spot offers hit a 19-month low, driving the propylene-to-PP spread below breakeven. Meanwhile, in the ACN sector, producers have kept operating rates subdued in order to offset elevated production costs. With margins in these sectors under pressure, the prospect of a recovery of propylene demand could remain limited into the near future.
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