Apr 16, 2025 8:43 a.m.

Morning Briefing - 15 Apr. 2025

Derek Yong CommoPlast Asia Sdn Bhd
A growing volume of re-exported PE cargoes from China has begun to surface in the Vietnamese market over the past week, as sellers divert shipments to more profitable destinations in response to the escalating US-China trade tensions.
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Morning Briefing

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AI-generated content may be incorrect.

15 April 2025

 

Brent: $64.88 (á $0.12)

WTI: $61.53 (á $0.03)

 

Naphtha CFR Japan: á $20

 

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 

www.commoplast.com     

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Re-export PE from China emerged in Vietnam 

A growing volume of re-exported PE cargoes from China has begun to surface in the Vietnamese market over the past week, as sellers divert shipments to more profitable destinations in response to the escalating US-China trade tensions. According to market sources, re-exporting activities may not persist, given the fact that Chinese buyers have not been particularly active in the USD market since the start of 2025. 

“We’re closely monitoring the possibility of increased direct shipments to Vietnam in the near term, particularly for US-origin materials,” one source noted.

At the end of last week, several deals for re-exported LLDPE film cargoes were concluded at below $1000/ton, on a CFR Vietnam basis. However, it remains uncertain whether this buying momentum will be sustained in the coming days.

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Indonesian traders slashed local PP, PE offers amid Rupiah recovery

Indonesian PP and PE trading houses began the week with sharp price reductions, diverging from the steady pricing approach upheld by a major domestic producer. The move followed a 0.9% rebound in the Rupiah against the US Dollar, supported by Washington’s April 9 decision to delay reciprocal tariffs on most nations. The shift in exchange rates eased restocking costs, prompting traders to reprice accordingly.

Despite the markdowns, buyers remained risk-averse, an attitude reinforced by broader market volatility following escalated US-China trade tensions. Underlining these bearish pressures, upstream conditions continued to weaken, with Asian naphtha prices having plunged an average of $108.5/ton over the past two weeks.

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