Morning Briefing - 04 Jul. 2025
CommoPlast
Morning Briefing
04 July 2025
Brent: $68.80 (â $0.31)
WTI: $67.00 (â $0.45)
Naphtha CFR Japan: á $5
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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US Lifted Restrictions on Ethane Exports
The United States has reportedly removed licensing requirements for ethane exports to China, paving the way for shipments to resume after a month-long halt and signalling progress in the ongoing US-China tariff truce.
The policy reversal, seen as a goodwill gesture in light of the recently signed trade deal, allows ethane cargoes to be delivered directly to Chinese ports without additional approvals. The move has already revived tanker movements, with at least eight vessels en route to China as of Wednesday, according to Reuters—many of which had been idling along the US Gulf Coast since June.
Ship tracking data from Kpler indicated that US ethane exports to China came to a standstill in June following the restrictions, down sharply from 257,000 barrels per day (bpd) in May. The pause rattled both American exporters and Chinese petrochemical producers, who depend heavily on the this ethane trade flow. China typically accounts for around half of all US ethane exports.
Industry participants now expect volumes to rebound quickly. Ethane flows are projected to recover to seasonal norms of approximately 240,000 bpd in July, restoring momentum to a trade that had grown steadily before the disruption.
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US-Vietnam Trade Pact Draws Attention, But Fails to Stir PP, PE Market Sentiment
Trading sentiment in Vietnam’s PP and PE markets held steady despite recent reports of a trade agreement reached between Vietnam and the United States, just days ahead of the 9 July reciprocal tariff moratorium deadline.
Market participants said the deal’s immediate implications for the domestic polymer market remained limited, as attention stayed focused on more pressing issues—namely, the recent VAT reduction and supply disruptions linked to a major Saudi producer.
“There are still many uncertainties around the trade agreement. We’re waiting for detailed implementation guidelines before making any moves,” one market source commented.
Under the reported terms of the deal, the US will impose a 20% tariff on Vietnamese exports and a 40% duty on transshipped goods. In return, Vietnam has agreed to eliminate all tariffs on American exports—a move that has stirred interest in potential downstream impacts, particularly for US-origin ethane, propane, and PVC.
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