Morning Briefing - 26 Mar. 2026
CommoPlast
Morning Briefing
26 March 2026
Brent: $102.22 (- $2.27)
WTI: $90.32 (- $2.03)
Naphtha CFR Japan: â
Ethylene CFR NEA: Stable
Ethylene CFR SEA: â
Propylene FOB Korea: á
Propylene CFR China: á
*Data represent closing prices of the previous trading day
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Statistics show China influencing regional polyolefin trends as capacity expands
China is steadily asserting itself as a major petrochemical player, with rapid supply growth outpacing domestic demand. This dynamic is pushing PP toward true export dependence, while triggering surplus-driven export surges in standard PE grades. PP volumes are moving offshore efficiently, solidifying China’s position as a key marginal exporter. Conversely, PE remains more congested—while standard grades are exported to relieve pressure, China structurally remains a net importer for premium grades. To manage this, producers are reshuffling PE grades rather than cutting overall output. In both cases, capacity, not consumption, is now the primary driver of prices.
Across Asia, the Chinese supply overhang is keeping prices in check, and near-term upside appears limited unless policy intervenes to curb capacity or enforce production discipline.
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Indonesia’s major producer offers stays firm as tight supply offsets post-Raya demand lull
The Indonesian market reopened after the Hari Raya holiday with tight supply and upstream volatility keeping prices firm, even as post-festive demand remains subdued. A major Indonesian producer re-entering the market three weeks after declaring force majeure has provided limited relief, but conditions are still far from normalization.
Demand fragility may linger, but structural tightness caps downside risk, leaving the market susceptible to sporadic spikes rather than broad corrections.
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