Morning Briefing - 19 Dec. 2025
CommoPlast
Morning Briefing
19 December 2025
Brent: $59.82 (+ $0.14)
WTI: $56.15 (+ $0.21)
Naphtha CFR Japan: + $2
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: - $5
Propylene CFR China: - $5
*Data represent closing prices of the previous trading day
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Southeast Asian PE Slid in China, Market Confidence Remained Weak
Southeast Asian PE offers into China weakened further early this week, as at least two major producers trimmed prices amid persistently subdued buying interest. The marginal appreciation of the yuan against the US dollar — typically a supportive factor for imports — failed to translate into a meaningful pickup in demand, with Chinese buyers sticking to cautious procurement strategies amid poor near-term visibility.
The latest round of discounts has done little to stimulate demand, with Chinese importers firmly in control of negotiations. Weak domestic benchmarks and the prospect of ample supply in the weeks ahead continue to cap buying interest, leaving Southeast Asian producers with limited leverage to defend offers, particularly for LLDPE and LDPE film grades.
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Downtrend in Malaysian PVC Market Shows Signs of Easing, Buyer Caution Persists
The downward momentum in Malaysia’s import PVC market showed signs of easing in the week to 19 December 2025, as regional and international suppliers held back from aggressive price cuts amid reduced competitive pressure from China. Fresh price lists from key ASEAN producers were largely stable, or down by $10/ton from the previous month, with limited scope for negotiations.
Market participants noted that Chinese PVC suppliers have been attempting to establish a price floor in response to severe margin compression. In recent weeks, several domestic Chinese producers have voluntarily reduced operating rates or temporarily halted production to manage inventory levels.
Chinese PVC offers have also been underpinned by a sharp rise in shipping costs, which has lifted delivered prices into Southeast Asia. Nevertheless, concerns persist over the durability of the current freight strength. Market sources cautioned that Chinese export offers could come under renewed pressure should shipping costs retreat, potentially reintroducing downward risks to the Malaysian import market.
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