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CommoPlast

Morning Briefing

12 December 2024

Brent: $73.52 (+ $1.33)

WTI: $70.29 (+ $1.70)

Naphtha CFR Japan: + $3

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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The Chinese polyolefins market has remained stable this week, with market participants maintaining a cautious outlook despite anticipation of a key policy meeting that was expected to deliver significant economic stimulus.

While key polymer grades, including homo-PP, LDPE, and HDPE, saw minor price adjustments, Chinese traders remain adamant that a CNY 50/ton discount on LLDPE film did not necessarily signal a potential price correction. 

Current market dynamics are characterized by subdued trading activity, with buyers exhibiting restraint in making substantial purchases. This hesitancy stems from approaching year-end considerations and prevailing macroeconomic uncertainties. Concurrently, international suppliers are closely monitoring domestic market developments to inform their pricing strategies for January shipment offerings.

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Southeast Asian PP market may be looking at tighter PP supply from ASEAN origin in the first quarter of 2025 as Vietnam’s Hyosung Vina planned a 30-day overhaul at its 600,000 tons/year plant. 

This development comes amid a wave of planned shutdowns across Southeast Asia in early 2025. Other significant facilities set to go offline include Long Son Petrochemical, with a PP production capacity of 400,000 tons/year, and JG Summit Petrochemical, with a capacity of 300,000 tons/year.

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