Morning Briefing - 06 Jan. 2026
CommoPlast
Morning Briefing
06 January 2026
Brent: $61.76 (+ $1.01)
WTI: $58.32 (+ $1.0)
Naphtha CFR Japan: - $8
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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Southeast Asian PP Market Reopens Firm As Geopolitical Risks Harden Seller Stance
The Southeast Asian PP market reopened on a firmer note at the start of 2026, with the tentative softening trend seen ahead of the New Year holiday failing to carry through into the first trading session. Weekend developments in Venezuela sharpened geopolitical risk perceptions, prompting sellers to hold offers steady to higher. Across key markets including Indonesia, India and Vietnam, spot PP prices tracked a stable-to-firmer trajectory, though the firmer pricing tone was not matched by a corresponding pickup in demand.
Buying interest remained muted, with market participants pointing to comfortable regional supply as a key restraining factor. Stable operating rates in China, Vietnam and Malaysia, coupled with ample on-hand inventories, reduced the urgency for immediate restocking and allowed buyers to remain selective on volumes.
Attention is now firmly centered on the sustaibility of the ongoing crude oil rally. Market players are closely monitoring whether strength in upstream energy markets can translate into sustained cost support for polyolefins, or if downstream PP prices will continue to face resistance amid broadly balanced supply-demand fundamentals.
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Chinese PP, PE Markets Extend Gains At Start Of 2026
China’s PP and PE markets reopened after the extended New Year holiday on a firmer footing, with spot prices rising by CNY 50/ton, extending the upward momentum seen prior to the break. Market sentiment was buoyed by heightened concerns over escalating global geopolitical tensions alongside a run of supportive Chinese economic indicators, which together lent confidence to early price formation.
Inventory movements reinforced the bullish undertone. Data showed Sinopec and CNPC collectively drew down around 50,000 tons of polyolefin stocks in a single day on Sunday, 4 January, underscoring opportunistic restocking by domestic traders positioning for a stronger market upon the official reopening on Monday.
However, the improvement in prices was not fully mirrored by downstream activity. Physical trading remained subdued, with converters limiting purchases to hand-to-mouth volumes to meet immediate production requirements. Most buyers continued to adopt a wait-and-see stance, closely monitoring whether the latest round of price increases can be sustained amid still-fragile demand fundamentals.
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