Morning Briefing - 15 May 2026
CommoPlast
Morning Briefing
15 May 2026
Brent: $105.72 (+ $0.09)
WTI: $101.17 (+ $0.15)
Naphtha CFR Japan: Stable
Ethylene CFR NEA: -$20
Ethylene CFR SEA: -$20
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Asian ethylene market extended loses on easing supply tightness
The Asian ethylene market remained under pressure in the week ending 15 May, extending its losing streak to a sixth consecutive week as easing supply tightness in Northeast Asia continued to weigh on sentiment. Weak downstream demand further amplified the bearish tone, with buying indications slipping into the low-$1,100s/ton range.
Market participants said improving spot availability across the region has steadily eroded earlier supply concerns, particularly as cracker operating rates in South Korea and Southeast Asia recover. The increase in regional output has added downward pressure to an already fragile market, where derivative demand has yet to show meaningful improvement.
Despite the softer outlook, market discussions suggested the downside may remain somewhat contained in the near term. Firm upstream naphtha costs continue to provide a degree of support, potentially limiting the pace of further corrections even as supply conditions loosen.
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Sluggish demand maintained downward pressure on Asian PVC sector
Sluggish demand continued to pressure the Asian PVC market this week, with fresh import offers from major Chinese producers declining by $10-20/ton week on week. While some buyers cautiously explored restocking opportunities, overall trading activity remained subdued as converters across Asia maintained a hand-to-mouth purchasing approach in response to uncertain near-term consumption prospects.
In India, buying sentiment stayed restrained ahead of the monsoon season, limiting momentum in regional trade discussions and slowing negotiations for June-arrival cargoes. Meanwhile, buying indications for China-origin ethylene-based PVC in Southeast Asia increasingly clustered around the $800/ton CIF level, although suppliers have yet to accept these prices, resulting in a continued standoff between buyer expectations and seller targets.
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