Morning Briefing - 07 August 2025
CommoPlast
Morning Briefing
06 August 2025
Brent: $66.89 (â $0.75)
WTI: $64.35 (â $0.81)
Naphtha CFR Japan: â $3
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $5
Propylene CFR China: á $2
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Malaysian PP Market Slumps on Widening Supply
The Malaysian PP market took a sharp turn lower this week as supply from a key domestic producer surged, triggering a long-anticipated price correction.
Market sources confirmed that fresh offers for homo-PP yarn and injection grades were slashed by MYR 400/ton ($95/ton) from the previous week’s levels. The move comes amid a notable improvement in availability, with buyers welcoming the adjustment but remaining wary.
"Despite the drop, sentiment stays cautious," a trader noted. “The weak demand environment across China and Southeast Asia continues to cast a shadow over near-term market prospects.”
Adding to the pressure is the return of a major Vietnamese producer to the export market, fuelling concerns that additional downward revisions may be on the horizon if demand fails to recover meaningfully.
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Chinese PET Bottle Market Continues To Search for Direction
China’s PET bottle market remained directionless over the past week as supply-side efforts, including operating rate cuts, failed to spark a meaningful recovery in demand.
Producers struggled to anchor price trends, resulting in a flurry of inconsistent adjustments largely tied to fluctuations in upstream PX and PTA futures. Early in the week, several major exporters trimmed offers by $5–15/ton, only to raise them again mid-week in response to a rebound in futures markets.
Despite the volatility, demand conditions remained broadly muted both domestically and in export markets. Most buyers opted for minimal, need-based replenishment, anticipating more favourable pricing in the near term.
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