Morning Briefing - 31 July 2025
CommoPlast
Morning Briefing
31 July 2025
Brent: $73.24 (á $0.73)
WTI: $70.00 (á $0.79)
Naphtha CFR Japan: á $19
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: â $8
Propylene CFR China: á $1
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Indonesian PP Buyers Moved to Restock as Local Market Slumped
The Indonesian homo-PP market experienced a volatile week, with sentiment shifting markedly from confusion to renewed buying interest. A sharp price cut by a major local producer at the beginning of the week initially left many buyers stunned, but momentum quickly turned as restocking activities gained pace toward the weekend.
Market sources reported that small to medium-sized converters were particularly active in replenishing inventories, with deals concluded at IDR 200,000–300,000/ton above the producer’s official price list. The surge in demand was strong enough that several distributors temporarily halted purchase orders due to logistical constraints.
While some players continue to hold out for deeper discounts on bulk volumes, there is growing belief among market participants that the recent restocking wave suggests an emerging acceptance of current price levels—potentially marking a near-term floor for the market.
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Chinese PE Market Stabilises, But Buyers Remain Cautious
After a prolonged period of volatility, China’s domestic PE market has shown signs of stabilisation. Spot prices for HDPE film have held firm for three consecutive weeks, while LLDPE and LDPE film grades have entered their second week of price stability.
This firmer footing is underpinned by a combination of supportive factors: a noticeable drop in import arrivals, production adjustments at the local level, and a cautiously improving demand outlook ahead of the traditional manufacturing season in August.
Despite these bullish elements, market sentiment remains restrained. Buyers continue to exercise caution, limiting replenishment activities and refraining from aggressive stockpiling. For many, firm purchasing decisions hinge on clearer evidence of a recovery in downstream finished goods demand.
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