Morning Briefing - 30 Apr. 2025
CommoPlast
Morning Briefing
30 April 2025
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Muted pre-holiday demand dampens post-Labour Day outlook in China
Despite expectations for a seasonal uplift, China’s PP and PE markets showed little sign of pre-Labour Day restocking, as sentiment remained subdued ahead of the five-day holiday. Efforts by major state-owned producers, Sinopec and CNPC, to manage inventories proactively have done little to offset the prevailing pessimism among market participants.
The ongoing escalation of the Sino-US trade war continues to cast a long shadow over China’s manufacturing landscape. Export-dependent converters—particularly those reliant on US-bound orders—are scaling back operations or halting production entirely. One stark example is Guangdong Banbao Toys Co Ltd, a key player in the children’s toy sector, which plans to suspend operations from 6 May to 5 November 2025.
Unless there is a breakthrough in trade negotiations, downstream demand is likely to remain under considerable pressure. Many converters are extending holiday shutdowns, significantly curbing raw material procurement and weighing heavily on near-term market prospects.
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Indonesian buyers cautiously return to the market as prices fell sharply
After weeks of muted activity, trading sentiment in Indonesia’s PP and PE markets is showing tentative signs of revival, with buyers cautiously stepping back in to replenish stocks amid a sharp drop in domestic prices. Although end-product demand remains subdued, the recent downturn in raw material costs—reaching multi-month lows—has prompted some converters to resume purchasing on a limited scale.
“We procured a few hundred tonnes of localised homo-PP from the distribution market,” said a woven bag converter. “We’re still monitoring the market closely and may consider further purchases if sellers offer additional discounts.”
The renewed buying interest, albeit measured, marks a potential turning point in market activity, though sustained momentum will likely hinge on further price movements and a recovery in downstream demand.
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