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CommoPlast

Morning Briefing

7 February 2025

Brent: $74.29 (- $0.32)

WTI: $70.61 (- $0.42)

Naphtha CFR Japan: (- $3)

Ethylene CFR NEA: + $5

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: - $5

*Data represent closing prices of the previous trading day

Following the Lunar New Year holiday, Chinese homo-PP exporters observed a surge in overseas demand due to constraints in regional availability. The most pronounced interest emerged from Southeast Asia, particularly the Philippines, where an indefinite overhaul at the country’s sole PP facility left a significant supply gap. Seizing the opportunity, Chinese exporters presented PP offers at slightly firmer levels.

However, optimism for an extended rebound remained cautious. Market players stayed closely attentive to domestic inventory levels, which escalated faster over the Lunar New Year holiday than initially expected. Coupled with a recent uptick in domestic production, improving availability could curb further price escalations.

Mirroring regional trends, the Vietnamese import PE market received limited new offers in the week following the Lunar New Year holiday. Nonetheless, market participants held on to expectations for a potentially firmer near-term market, bolstered by both regional and international supply constraints, especially for the LLDPE film grade.

Among the few new offers, a Middle Eastern producer raised LLDPE film offers by a significant margin compared to January’s price list. Meanwhile, other regional producers reflected similar inclinations, floating selling ideas for March loading at elevated levels. However, the buying response has so far been tepid, with purchasers adopting a cautious stance amid recent disruptive developments in the US’s foreign trade policy.

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