Morning Briefing - 11 Mar. 2026
CommoPlast
Morning Briefing
11 March 2026
Brent: $87.80 (- $11.16)
WTI: $83.45 (- $11.32)
Naphtha CFR Japan: - $150
Ethylene CFR NEA: + $20
Ethylene CFR SEA: + $20
Propylene FOB Korea: - $10
Propylene CFR China: - $20
*Data represent closing prices of the previous trading day
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Feedstock shortages push Asia’s petrochemical chain into stress
Asia’s petrochemical sector is sliding into a period of mounting disruption as force majeure declarations and operating cuts spread across the region. Producers are increasingly struggling to secure critical inputs for PP and PE production, exposing Asia’s deep reliance on Middle Eastern feedstocks. What initially appeared as isolated outages is now evolving into a broader structural constraint across the petrochemical chain.
A more persistent risk lies in policy responses emerging across the region. Governments are increasingly prioritising transportation fuels and household energy security, squeezing feedstock availability for petrochemical use. In India, LPG has already been redirected toward domestic consumption, underscoring how polymers are slipping down the strategic hierarchy during an energy crunch. Even if tensions ease, depleted inventories and disrupted supply chains suggest Asia’s polymer markets could face an extended period of tight availability and heightened volatility.
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Malaysia market shifting its landscape as volatility raises uncertainty
Malaysia’s polyolefin market is entering a more volatile phase as producers retreat from traditional contract structures and push buyers toward the spot market. This shift is coinciding with supply disruptions linked to Middle Eastern feedstock constraints, with force majeure declarations affecting regional suppliers including Chandra Asri Petrochemical and PCS Pte Ltd. For Malaysian converters, who have increasingly adopted lean purchasing strategies, this calls for a rapid reassessment of procurement risk. With a stronger US dollar compounding upside on costs, many converters are switching to holiday mode for Hari Raya Aidilfitri, signalling that demand restraint may soon mirror the region’s growing supply constraints.
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