Morning Briefing - 11 Apr. 2025
CommoPlast
Morning Briefing
11 April 2025
Brent: $63.33 (â $2.15)
WTI: $60.07 (â $2.28)
Naphtha CFR Japan: á $29
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $5
Propylene CFR China: á $5
*Data represent closing prices of the previous trading day
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Surprised uptick
China’s spot PP and PE markets experienced a tentative lift in sentiment, following the US government’s unexpected decision to stall reciprocal tariffs on most trading partners. Buying interest improved as fears of an immediate global economic slowdown cooled, helping to drive a rebound in crude oil and futures benchmarks.
Nonetheless, market participants remained cautious as the now rectified, 145% tariffs the US imposed on Chinese imports came into effect. In the PP sector, most transactions materialised only after sellers showed pricing flexibility, underscoring ongoing apprehension.
Meanwhile, despite the improvement in macroeconomic sentiment, the spot LLDPE market slipped another CNY50/ton—defying the broader futures rally and reinforcing signs of weakness in this particular segment.
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Malaysian Major’s LDPE Offers Defy Vietnam's Currency Woes
A key Malaysian producer unsettled sentiment in Vietnam’s import market by maintaining May offers at April levels, defying the broader caution triggered by US trade policy volatility. The rollover appeared to have been attributed to ongoing production disruptions, which may have shifted the producer’s attention away from subdued regional demand.
Still, buyers expressed concern over rising restocking costs, especially as the Vietnamese Dong lingered near its historic low at VND 26,000/USD. Cautions deepened after another Malaysian supplier was reported to have concluded deals at significantly lower prices—by as much as $35-45/ton—casting further doubt on the first producer’s pricing stance.
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