Morning Briefing - 10 Apr. 2025
CommoPlast
Morning Briefing
10 April 2025
Brent: $65.48 (á $2.66)
WTI: $62.35 (á $2.77)
Naphtha CFR Japan: â $20
Ethylene CFR NEA: â $10
Ethylene CFR SEA: â $10
Propylene FOB Korea: â $5
Propylene CFR China: â $5
*Data represent closing prices of the previous trading day
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Chinese PET Exports Crash on Trade War Shocks
China’s PET bottle export market opened the week with sharp declines, tumbling by $55–70/tonne as mounting trade war tensions triggered a collapse in upstream futures. Crude oil benchmarks extended a five-day losing streak, hitting their lowest levels since February 2021, dragging polyester chain futures down to multi-year lows.
In a rare contrarian move, select Vietnamese traders stepped in to snap up cargoes, viewing the sharp correction as a fleeting opportunity to replenish inventories at bargain prices. Their buying interest stood in stark contrast to broader market sentiment, where uncertainty and risk aversion prevailed amid intensifying global trade disruptions.
Market anxiety deepened as China moved to implement a sweeping 84% tariff on US goods by 10 April—just one day after Washington imposed a staggering 104% tariff on Chinese imports. The tit-for-tat escalation has cast a long shadow over regional trade flows, fuelling further volatility in an already fragile market.
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Indonesian PP Distributors Defy Soft Producer Guidance, Citing Rupiah Slump
Indonesia’s PP distributors opened the week with price hikes of IDR500,000–1,000,000/ton, moving against the softer guidance issued by a major producer earlier in the week. The move reflected traders’ intent to align with rising restocking costs, following a 2% depreciation in the Rupiah since the pre-holiday period.
Producers, however, continued to anticipate challenges in stimulating demand, particularly as escalating global trade tensions dampened both the macroeconomic outlook and upstream naphtha values.
Amid the divergence, buyers largely withheld from the market, adopting a wait-and-see approach. In parallel, Malaysian yarn buyers pushed back against offers exceeding their expectations by IDR 1,100,000/ton, citing a post-holiday lull in end-product demand.
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