Morning Briefing - 27 Jan. 2026
CommoPlast
Morning Briefing
27 January 2026
Brent: $65.59 (- $0.29)
WTI: $60.63 (- $0.44)
Naphtha CFR Japan: +$8
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: +$10
Propylene CFR China: +$15
*Data represent closing prices of the previous trading day
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Asian PP Market Extended Rally on Converging Supply-Demand Tailwinds
The Asian PP market began the week on a firmer footing, with fresh price increases recorded across both import and domestic markets. Persistently higher upstream propylene costs, coupled with a revival in downstream demand in China, continued to lift market sentiment.
Additional support stemmed from mounting concerns over severe weather in the US, which market participants fear could disrupt production and ripple through global supply chains, tightening availability.
Export offers for Chinese homo-PP rose by $20–25/ton week on week. Meanwhile, buyers in Vietnam and Indonesia reported receiving revised price lists from several international suppliers, reflecting increases of $20–30/ton.
Despite the firmer pricing tone, actual deal activity remained limited. Many buyers retreated to the sidelines after completing recent restocking, opting to monitor whether the current uptrend can be sustained before committing to fresh purchases.
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US Petrochemical Producers Suspended Operations Ahead of Winter Storm
Several petrochemical units in Texas were taken offline ahead of the Arctic blast that swept across the US over the weekend, driving temperatures to sub-zero levels and bringing heavy snowfall. Affected facilities include multiple units at ExxonMobil’s Baytown complex and Formosa Plastics’ Point Comfort site, according to market sources.
At the time of writing, there were no further updates on the operating status of other plants in the Houston petrochemical hub.
Despite the precautionary shutdowns, industry participants do not expect a repeat of the severe supply disruptions seen during the 2021–2022 winter storms. Most producers are understood to have implemented winterisation measures and contingency plans, limiting the potential impact on overall market balances.
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