CommoPlast

Morning Briefing

06 May 2026

Brent: $109.87 (- $4.57)

WTI: $102.27 (- $4.15)

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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CAP restart could mark a turning point for Indonesian polyolefin balance

PT Chandra Asri Pacific (CAP) has lifted its force majeure on feedstocks effective 4 May, marking a turning point for Indonesia’s supply outlook after weeks of disruption. The outage, triggered by the Strait of Hormuz closure, had tightened domestic polyolefin availability by constraining feedstock flows. Its resolution signals a gradual return of supply, though recovery will depend on feedstock stability and downstream demand, with some market participants also pointing to the planned removal of import duties as a potential factor influencing the timing of the move.

CAP has moved to stabilise operations by securing alternative feedstock, prioritising output to support the domestic PE and PP market while other producers remain constrained. While the easing of force majeure should relieve near-term tightness, buying sentiment remains cautious. A measured recovery is expected, with geopolitical risks around US-Iran tensions continuing to cloud feedstock security and cap market confidence.

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China cemented swing supplier role in March as PP, PE and PVC exports spike

China’s polymer markets are converging around a single structural theme: domestic oversupply is being aggressively exported into a region starved of material by feedstock disruptions. Across polymers, March data shows the same pattern unfolding — resilient or elevated domestic production, weakening import dependence, and a sharp surge in exports as global buyers pivot to China amid Middle East-linked supply shocks. The result is a decisive shift in trade flows, with China increasingly acting as the system balancer, clearing surplus volumes externally while cushioning regional shortages.

Read full story:

Statistics: China reshapes PP trade with record-setting exports as Strait of Hormuz disruptions upend global supply

Statistics: China’s March PE exports surged 87.4% as Middle East crisis forces aggressive regional supply shifts

Statistics: Record output & export surge amid VAT timing and Middle East disruptions

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