Morning Briefing - 15 July 2025
CommoPlast
Morning Briefing
15 July 2025
Brent: $69.21 (â $1.15)
WTI: $66.98 (â $1.47)
Naphtha CFR Japan: á $13
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Confusion Lingers Despite Strong Start in Vietnamese PE Market
The Vietnamese PE market kicked off the new trading week on a firm footing, with domestic traders actively raising offers for localized cargoes to reflect the recently enforced 2% import duty on HDPE and LLDPE from various origins. Despite the bullish sentiment, actual trading remained limited as many buyers pushed back against some of the sharper price hikes.
Adding to the market unease, several representative offices expressed concerns over the lingering confusion surrounding retroactive customs duties on cargoes cleared between 8 and 11 July. These sellers are currently working closely with both the Customs Department and their customers to coordinate payment settlements.
“We’ve decided to temporarily halt new offers in order to focus on resolving the import duty issues tied to parcels cleared late last week,” a trading house shared. “Surprisingly, we were notified of additional duty on Chinese-origin LLDPE film cargoes, which were expected to be exempt. There's still a great deal of uncertainty surrounding the implementation of the new regulation.”
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Chinese PE Market Continued to Soften; Re-export Opportunities Emerged
Contrasting the firm sentiment in neighbouring Vietnam, China’s domestic PE market extended its downward trajectory into the new trading week, with spot offers edging lower by another CNY 50/ton. The continued softness reflects persistently sluggish demand, with market participants anticipating limited near-term improvement as uncertainties surrounding US trade policy continue to dampen confidence. In May, China and the US have agreed to pause further tariff actions until 12 August 2025.
In a notable development, export-oriented traders have reportedly begun sourcing competitively priced, localised Saudi-origin LLDPE film cargoes from the domestic market, citing a rise in inquiries from overseas buyers seeking re-export parcels.
Market players are cautiously optimistic that growing re-export activity, combined with a slowdown in import arrivals, could help ease pressure on the domestic spot market in the coming weeks.
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