Morning Briefing - 02 Dec. 2025
CommoPlast
Morning Briefing
02 December 2025
Brent: $63.17 (+ $0.79)
WTI: $59.32 (+ $0.77)
Naphtha CFR Japan: - $4
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: + $15
Propylene CFR China: + $15
*Data represent closing prices of the previous trading day
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Lotte Chemical and HD Hyundai Move Forward With Cracker Consolidation Plan
HD Hyundai Oilbank and Lotte Chemical have submitted a formal restructuring plan to the Ministry of Trade, Industry and Energy (MOTIE), marking a key milestone in their bid to streamline naphtha cracker operations at the Daesan petrochemical complex.
Under the proposal, Lotte Chemical will transfer its Daesan cracker and associated assets to HD Hyundai Chemical, after which it will inject fresh capital to establish a new 50:50 joint venture—replacing the existing 60:40 ownership structure with HD Hyundai Oilbank. As part of the consolidation, Lotte Chemical’s 1 million tons/year Daesan cracker will be permanently shut, leaving HD Hyundai Chemical’s 850,000 tons/year cracker as the sole operating unit at the site.
The implementation of the restructuring plan remains contingent on formal government approval.
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Freight Rate, Currency Exchange Weighed on Chinese PVC Export Market
China’s export PVC market extended its downtrend over the past week, with carbide-based cargoes posting a fourth consecutive weekly decline to fresh lows. The continued softness comes despite supportive cues—including India’s withdrawal of proposed anti-dumping duties (ADD) and firmer PVC futures on the Dalian Commodity Exchange—underscoring that external cost pressures remain the primary drag on export sentiment.
In the meantime, Chinese exporters have struggled to divert cargoes to alternative destinations, pressured by both an appreciating Yuan and a sharp escalation in freight rates. The stronger Chinese currency has marginally eroded FOB competitiveness, but market observers emphasised that shipping costs remain the more disruptive factor.
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