Morning Briefing - 28 Oct. 2025
CommoPlast
Morning Briefing
28 October 2025
Brent: $65.62 (- $0.32)
WTI: $61.31 (- $0.19)
Naphtha CFR Japan: - $4
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Chinese Suppliers Lifted Export PP Offers Amid Rising Upstream Costs
As anticipated, major Chinese polypropylene (PP) producers raised export offers by $5–10/ton from the previous week, supported by firmer upstream naphtha costs and stronger futures on the Dalian Commodity Exchange. The modest increase, however, underscored lingering caution in the market, as suppliers appeared wary that the upstream rally might prove ephemeral.
Volume discounts remained available, but overseas buyers showed limited interest in the latest offers, having already replenished sufficient quantities earlier. Market participants are now keeping a close watch on developments across the energy and feedstock sectors, though sentiment remains subdued amid growing pessimism over the sustainability of the current price uptick.
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Indonesian Traders Raise Local PE Prices After Robust Sales
Despite a major domestic producer keeping its weekly price list unchanged, Indonesian buyers reported receiving higher offers for localised Malaysian PE cargoes from trading houses, up by around IDR 200,000/ton from last Friday. According to market sources, the price adjustments were driven by easing inventory pressure after traders recorded strong sales late last week.
“We tried to place bids at last week’s deal levels but were rejected,” one buyer said. “Although upstream naphtha costs remain firm, we prefer to observe the market a bit longer before accepting higher prices.”
Market discussions suggest that following the recent wave of successful domestic transactions, international suppliers could struggle to attract Indonesian buyers without offering more competitive prices.
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