Morning Briefing - 24 Apr. 2026
CommoPlast
Morning Briefing
24 April 2026
Brent: $105.07 (+ $3.16)
WTI: $95.85 (+ $2.89)
Naphtha CFR Japan: á
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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Asian petrochemical markets on a correction path as non-Hormuz flows gradually ease supply fears
Supply risks that recently underpinned Asian petrochemical markets are gradually unwinding, and could gradually shift sentiment from disruption to stabilisation. South Korea’s 2.8 million ton naphtha procurement via non-Hormuz routes has effectively removed the immediate threat of feedstock shortages, restoring confidence in cracker operations and anchoring regional cost expectations. At the same time, incremental supply is resurfacing, reinforcing the shift in tone.
Lotte Chemical Titan’s feedstock movement into Indonesia and tentative steps by a domestic producer to re-offer contractual volumes point to improving availability, while a UAE producer’s restart and rerouted shipments via the Khorfakkan port further dilute geopolitical risk. As supply visibility sharpens, upside momentum looks increasingly capped. However, persistent production gaps in Vietnam, including at LSP and NSRP, could still upend this rebalancing and inject fresh volatility into the market.
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Chinese homo-PP slump resets regional floor, deepens downside bias
Chinese homo-PP continues to set the bearish tone across Asia, with domestic prices extending losses despite futures stabilising, underscoring the depth of demand weakness. Export offers into Vietnam have now slipped below $1,300/ton CIF, resetting the regional benchmark and forcing a broader repricing across Southeast Asia as Chinese suppliers push volumes outward.
That pressure is cascading into key import markets, with consecutive cuts seen in Indonesia and fresh reductions emerging in Malaysia and India, reinforcing a clear downward bias. Yet the downside is not without risk. Any renewed escalation in Middle East tensions could quickly tighten upstream supply and reverse sentiment, leaving buyers exposed if they turn overly complacent at current levels.
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