Morning Briefing - 05 Jan. 2026
CommoPlast
Morning Briefing
05 January 2026
Brent: $60.75 (- $0.10)
WTI: $57.32 (- $0.10)
Naphtha CFR Japan: - $6
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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Saudi Aramco Lifted LPG Prices for the Second Straight Month
State-owned Saudi Aramco has raised official selling prices (OSPs) for liquefied petroleum gas (LPG) to Asia for January 2026 loading, extending gains for a second consecutive month as tightening supply-demand fundamentals bolstered pricing power. The move has also prompted market participants to question the durability of the upswing as winter heating demand nears its seasonal peak.
The latest price list saw increases of $30/ton on propane and $35/ton on butane.
The two-month price recovery has also diminished LPG’s appeal as an alternative feedstock in the Asian petrochemical sector. While flexible feed crackers shied away from costlier LPG, several propane dehydrogenation units in China are mulling over temporary shutdowns as margins continue to erode. If implemented, such cutbacks could cap further upside in the regional LPG market.
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Malaysian Producer Cut January PP, PE Offers for the Seventh Straight Month
As widely anticipated, a major malaysian producer trimmed January offers across most PP and PE grades from December levels. The reductions reflect the weight of a sluggish regional market that continues to cap sellers’ pricing power, even as domestic supply remains relatively tight. On a more constructive note, early signs of improved buying interest have emerged, suggesting that further downside may be increasingly difficult to justify.
Attention across the market remains firmly fixed on PRefChem’s operational progress as the producer continues efforts to stabilise output at its troubled integrated petrochemical complex. A sustained recovery could reshape the domestic supply landscape.
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