Morning Briefing - 21 July 2025
CommoPlast
Morning Briefing
21 July 2025
Brent: $69.28 (â $0.24)
WTI: $67.34 (â $0.20)
Naphtha CFR Japan: á $2
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Malaysian LLDPE Film Market Slumps to 2025 Lows; Tight HDPE Supply Offers Limited Support
The Malaysian LLDPE film market sank to its lowest level of 2025 on the final trading day of last week, pressured by the sudden emergence of competitive spot cargoes from PrefChem. These attractively priced parcels drew interest from converters who had previously stayed on the sidelines amid persistent uncertainty surrounding the Sales and Service Tax (SST) implementation.
In contrast, HDPE sentiment found mild support from tightening supply. A major local producer reported an unexpected production issue, leading to delivery delays for earlier commitments. “The market is a bit tight as PrefChem has yet to release spot HDPE cargoes, and supply from a Singaporean plant remains limited. However, traders are still unable to lift prices due to the prevailing weak demand,” a market source explained.
Malaysian buyers, grappling with the dual headwinds of the newly enforced SST regime and looming US tariff risks, remained cautious. Purchasing activity stayed subdued, with most buyers refraining from restocking unless prices dropped significantly.
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Middle Eastern PE Producers Target Higher August Offers Despite Tepid Demand
Middle Eastern PE producers are signalling firmer pricing intentions for August shipments to Southeast Asia, buoyed by mounting supply disruptions in Saudi Arabia. Despite muted regional demand and stiff competition from more attractively priced Chinese cargoes, at least one producer is aiming to push LLDPE film offers above the $1000/ton mark.
According to market sources, SHARQ Eastern Petrochemical Company – also known as Qamar – has taken all PE production units in Al Jubail offline following an unexpected power outage earlier this month. The producer is expected to skip August spot allocations in order to prioritise previously committed deliveries.
The SHARQ outage compounds an already tightening supply scenario, following an unplanned shutdown at Sadara Chemical and reduced operating rates at Yansab. With multiple disruptions converging, market participants anticipate a noticeable reduction in Saudi-origin PE export availability in the near term.
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