|
|
Morning Briefing - 03 Feb. 2025Data showed that at least four new PDH units in China, with a combined nameplate capacity of 3.06 million tons, are scheduled to commence operations in the first half of 2025. Speculation persists that these startups may face delays |
|
CommoPlast
Morning Briefing
03 February 2025
Brent: $76.54 (+ $0.54)
WTI: $73.48 (+ $0.73)
Naphtha CFR Japan: -
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
____________________________________________________________________
The Asian propylene market has stabilized following seven consecutive weeks of gains, marking one of the most significant V-shaped recoveries in the sector since mid-June 2023. The rally was largely driven by supply constraints, particularly in South Korea. However, seasonal demand weakness, currency exchange volatility, and the anticipated startup of new propane dehydrogenation (PDH) plants in China have tempered buying interest.
Data showed that at least four new PDH units in China, with a combined nameplate capacity of 3.06 million tons, are scheduled to commence operations in the first half of 2025. Speculation persists that these startups may face delays due to unfavourable market conditions. However, the recent trend of new PP and PE plants coming online as scheduled—or even ahead of plan—suggests that the propylene sector should approach the situation with caution.
___________________________________________________________________ _
The Indian homo-PP market experienced a notable shift over the past week, with tighter supply conditions fuelling increased buying activity. Planned maintenance shutdowns at both domestic and international production facilities have constrained availability, prompting buyers to engage in short-covering. With domestic and Middle Eastern supplies tightened, Indian buyers have increasingly turned to Chinese-origin cargoes, raising questions about the potential trajectory of the broader Asian homo-PP market after the Lunar New Year.
Market expectation is that Indian buyers may continue to procure additional cargo throughout February, which could influence the market trend elsewhere in Asia. However, sources believed that purchasing activities may gradually weaken toward March as these above-mentioned overhauls are set to resume operations.
____________________________________________________________________
There are emerging reports that JG Summit may indefinitely shut down its entire petrochemical complex in the Philippines due to sustained poor profit margins. However, CommoPlast has not been able to independently verify this information. If confirmed, the Philippines would become entirely reliant on imports for its PP and PE supply.
The company began a phased shutdown of its cracker and downstream PP and PE plants in late December 2024, initially planning to restart operations by the end of March 2025. Meanwhile, the country’s only other local PP producer, Petron, has kept its PP unit offline throughout 2024 with no definitive timeline for resumption.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Country
Indonesia
About CommoPlast Asia Sdn Bhd
Your empowering market insight site
