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Morning Briefing - 20 Jan. 2025The Chinese and Southeast Asian LLDPE film markets are exhibiting divergent trends driven by contrasting regional dynamics. In China, a rising supply outlook exacerbated by the holiday lull has significantly dampened trading activity, leading to a sharp price correction in the domestic market. |
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CommoPlast
Morning Briefing
20 January 2025
Brent: $80.79 (- $0.50)
WTI: $77.88 (- $0.80)
Naphtha CFR Japan: - $2
Ethylene CFR NEA: Stable
Ethylene CFR SEA: + $10
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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The Chinese and Southeast Asian LLDPE film markets are exhibiting divergent trends, driven by contrasting regional dynamics. In China, a rising supply outlook exacerbated by the holiday lull has significantly dampened trading activity, leading to a sharp price correction in the domestic market. This downward pressure has compelled international suppliers to lower import offers in an effort to remain competitive.
Conversely, February shipment offers to Southeast Asia have demonstrated relative stability, with some firming observed due to constrained Middle Eastern supply. However, regional buyers remain cautious, displaying limited appetite for stockpiling amid persistent doubts about the sustainability of recent price increases.
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Trading sentiment in the Indonesian PP block copolymer market has shown signs of recovery as buyers began receiving approved import quotas for 2025, prompting a return to the market for replenishment activities. Market participants anticipate a further uptick in transactions in the coming weeks as more buyers finalise their quota approvals.
However, reports suggest that the approved import volumes for 2025 are lower compared to the previous year. This reduction raises concerns about potential disruptions in trading activity, particularly if converters are compelled to seek additional quotas before the current permits expire.
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