Morning Briefing - 26 Mar. 2025

CommoPlast

Morning Briefing

26 March 2025

Brent: $73.02 ( $0.02)

WTI: $69.00 (â $0.11)

Naphtha CFR Japan:  $1

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: â $5

*Data represent closing prices of the previous trading day 

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Chinese Homo-PP Exporters Test Firmer Offers

Several Chinese homo-PP suppliers have attempted to push export offers higher, raising prices by $2–5/ton from the previous week. These increases are ostensibly supported by a firmer futures market and signs of recovery in the domestic sector.

However, the viability of these price hikes remains in question amid intensifying market pressures. Demand in key Muslim-majority markets has softened ahead of the Eid al-Fitr holiday, while the sharp depreciation of local currencies against the US dollar continues to erode purchasing power.

“The combination of higher export offers, rising freight rates, and currency fluctuations has significantly inflated procurement costs for overseas buyers. So far, buying interest has been tepid,” a Chinese seller remarked.

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Malaysian Major Announces Unexpected Discount on LLDPE Film

A major Malaysian PE producer disrupted the local market by slashing its LLDPE film prices by MYR 120/ton ($27/ton), a move that appeared to disregard the region’s constrained supply conditions. The unexpected price cut drew sharp criticism from domestic traders, many of whom are still burdened with higher-cost inventory.

However, some market participants argued that the reduction was a necessary response to persistently weak demand throughout March. This subdued sentiment is likely to persist into the first half of April, as converters remain wary of inventory risks following Eid, a period typically marked by softer demand.

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