Morning Briefing - 27 Apr. 2026
CommoPlast
Morning Briefing
27 April 2026
Brent: $105.33 (+ $0.26)
WTI: $94.40 (- $1.45)
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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Southeast Asia PP, PE set for lull as buyers retreat ahead of regional holidays
Indonesian PP and PE markets start the week on the back foot, as fresh domestic price cuts reinforce a downcycle already set in motion by aggressive spot market corrections and softer regional sentiment. Local producers moved quickly to adjust, validating the second consecutive round of declines in the distribution market last week, where traders have been unwinding positions amid rising inflows of competitively priced Chinese cargoes.
The correction is now feeding into a broader dislocation in Southeast Asia, just as trading activity thins ahead of staggered holiday periods across China, Vietnam, Indonesia and Malaysia. With liquidity set to dry up and buyers already well-covered, the market is entering a holding pattern rather than a capitulation phase, it could limit the pace but not the direction of further declines.
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Southeast Asian PVC in a tug-of-war as Chinese supply overwhelms demand, drags prices lower
Southeast Asian PVC markets are gridlocked by a widening disconnect, as a surge of low-priced Chinese exports overwhelms regional pricing faster than producers can respond. Even steep cuts, have failed to revive demand, with buyers anchored to expectations of further downside. The market has flipped decisively into a demand-driven standoff, where comfortable inventories and eroding cost support continue to pressure prices lower.
Chinese cargoes clearing at sub-$900/ton CIF Southeast Asia levels have effectively reset the regional floor, sidelining higher-cost producers and draining liquidity from the spot market. Buyers are sticking to hand-to-mouth purchasing, deferring commitments as sentiment in India points toward a potential sub-$800/ton threshold.
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