Morning Briefing - 03 Apr. 2025
CommoPlast
Morning Briefing
03 April 2025
Brent: $74.95 (á $0.46)
WTI: $71.71 (á $0.51)
Naphtha CFR Japan: â $14
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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China’s PET Exporters U-turned on Rebound amid Eid Lull
China’s PET exporters reversed course on the previous week’s rebound, necessitated by the need to compensate for the rising shipping costs and persistently sluggish demand. The $5/ton reductions were aimed at facilitating transactions amid the absent of buyers from key Muslim-majority market.
Market feedback has been weak, with several Chinese sellers confirming a lack of strong buying interest. Nonetheless, stable upstream costs, lower sales pressure stemmed from a series of production disruptions, and hopes of a seasonal demand recovery ahead of summer have discouraged suppliers from conceding to steeper discounts. This tug-of-war is expected to persist in the coming days.
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Indonesian Major Surprised Local Market with mid-Holiday Price Cuts
An Indonesian major surprised the domestic market by implementing sweeping price cuts across its PP and PE cargoes, which seemed unusual for a time when most buyers have already left their desks for the holiday. Sources speculated that the move aimed to align prices with the distribution market, where discounts were offered prior to Lebaran to entice stockpiling.
However, some questioned whether the discounts would meet their intended effect, noting that converters could take time to resume purchases after the holiday lull. With most buyers having replenished their inventories as early as mid-March, the urgency to procure could remain limited, raising questions over buyers’ potential sensitivty toward the adjustments.
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