Morning Briefing - 14 Apr. 2025
CommoPlast
Morning Briefing
14 April 2025
Brent: $64.76 (á $1.43)
WTI: $61.50 (á $1.43)
Naphtha CFR Japan: â $2
Ethylene CFR NEA: â $25
Ethylene CFR SEA: â $10
Propylene FOB Korea: Stable
Propylene CFR China: á $5
*Data represent closing prices of the previous trading day
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No Reprieve for Chinese Converters
Chinese converters remain under intense pressure as the United States formalised reciprocal tariffs on Chinese imports, now set at a staggering 145%. The move has triggered a wave of order cancellations from American buyers, dealing a significant blow to China’s resin sector and casting a shadow over near-term market prospects.
Over the past week, a growing number of manufacturers have reported abrupt halts in US-bound orders, straining cash flows as inventory builds up. Finished goods, originally destined for export to the US, are now tying up capital and storage capacity, forcing converters to shift their focus towards finding alternative buyers.
With export demand in flux, converters are unlikely to actively procure raw materials in the short term, dampening confidence across the supply chain.
“The bearish outlook is expected to linger in the coming weeks,” a market source noted. “Attention has now turned to whether the Chinese government will step in with stimulus measures to cushion the impact on exporters.”
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PVC prices slipped on US-China trade war jitters
China’s PVC market reversed its two-week uptrend as deepening US-China trade tensions rattled sentiment, dragging prices down by CNY100–300/ton ($14–41/ton). The pullback came on the heels of a sharp correction in the futures market and slumping crude oil prices, which outweighed earlier optimism driven by demand recovery and inventory depletion.
The abrupt shift has prompted a more cautious approach among converters, many of whom are now adopting a wait-and-see strategy in anticipation of further market weakness. The PVC flooring segment—highly exposed to US demand, with around 31% of its exports bound for the American market—has shown particular restraint, pausing raw material purchases amid growing uncertainty.
With sentiment under pressure, near-term price direction will likely hinge on external demand signals and policy responses to the ongoing trade rift.
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