Jul 29, 2025 10:11 p.m.

Morning Briefing - 29 July 2025

Rochelle Nguyen CommoPlast Asia Sdn Bhd
The Chinese polyolefin market weakened at the start of the week as a sharp retreat in coking coal futures triggered a broader correction across the commodity complex.
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Morning Briefing

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29 July 2025

 

Brent: $70.04 (á $1.60

WTI: $66.71 (á $1.55)

 

Naphtha CFR Japan: â $2

 

Ethylene CFR NEA:  Stable

Ethylene CFR SEA: Stable

 

Propylene FOB Korea: Stable

Propylene CFR China: â $1

 

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Chinese Polyolefin Market Slips as Futures Rally Fizzles Out

The Chinese polyolefin market weakened at the start of the week as a sharp retreat in coking coal futures triggered a broader correction across the commodity complex. The most actively traded coking coal contract on the Dalian Commodity Exchange tumbled by 11%, dragging down sentiment in both futures and spot markets.

Spot offers for PP and PE softened by around CNY 50/ton ($7/ton) from the previous trading day, while the PVC sector saw steeper declines. Carbide-based PVC cargoes in particular dropped by as much as CNY 250/ton ($35/ton) amid the bearish shift.

In recent weeks, domestic polyolefin prices had found support from a rally in coal costs, driven by government-led production controls and efforts to rein in unhealthy competition. However, with coal prices now easing, buying momentum has faltered. Many market participants are stepping back to reassess the near-term outlook before committing to fresh purchases.

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