Morning Briefing - 13 Oct. 2025
CommoPlast
Morning Briefing
13 October 2025
Brent: $62.73 (â $2.49)
WTI: $58.90 (â $2.61)
Naphtha CFR Japan: â $8
Ethylene CFR NEA: â $20
Ethylene CFR SEA: â $20
Propylene FOB Korea: Stable
Propylene CFR China: â $3
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Fresh US Sanctions Stir Caution in China’s Polyolefin Market
China’s polyolefin market turned cautious following the US government’s decision on 10 October to expand its Specially Designated Nationals and Blocked Persons (SDN) List, which now includes several shipping firms, a Chinese port operator, and a petrochemical producer.
The move has raised concerns over potential disruptions to Iranian methanol shipments — a key feedstock for methanol-to-olefin (MTO) producers — which could drive up production costs across the sector.
Despite persistently weak downstream demand, Chinese suppliers held back from offering deeper discounts on PP and PE cargoes, opting instead to evaluate the potential impact of the sanctions on input costs before adjusting pricing strategies.
Adding to the uncertainty, Rizhao Shihua Crude Oil Terminal Ltd — a subsidiary of Rizhao Port Group — was also named on the SDN list, prompting speculation that crude inflows through the Shandong-based port could face interruptions. Market sources suggested that refineries and petrochemical complexes in the surrounding area may need to scale back operations, though this has yet to be confirmed.
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Southeast Asian Buyers Assessed the Downside Potentials of PE Sector
Southeast Asian buyers remained cautious this week as a steady influx of competitively priced US-origin PE cargoes kept sentiment tilted to the downside. Market participants questioned whether the prevailing bearish trend would persist in the weeks ahead and if other suppliers might be compelled to implement additional price cuts to stay competitive.
While expectations were far from bullish, sources highlighted escalating US-China trade tensions as a key risk factor that could prompt US-origin suppliers to accelerate sales in Southeast Asia before the year-end financial close — particularly as Brazil’s anti-dumping duty on US PE imports continues to restrict alternative export outlets.
“This may put pressure on Middle Eastern producers ahead of their November price announcements,” one market source commented. “However, we expect any further downward adjustments to be measured.”
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