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Morning Briefing - 12 February 2025The Chinese homo-PP export market stood on a stable-to-firmer track since the previous week, leveraging constraints in Southeast Asia supply. This pricing strategy may signal a shift in focus toward neighboring markets, particularly as freight rates to distant destinations, such as Latin America, have risen. |
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CommoPlast
Morning Briefing
12 February 2025
Brent: $77 (+ $1.13)
WTI: $73.32 (+ $1)
Naphtha CFR Japan: (+ $4)
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 Chinese homo-PP export market stood on a stable-to-firmer track since the previous week, leveraging constraints in Southeast Asia supply. This pricing strategy may signal a shift in focus toward neighboring markets, particularly as freight rates to distant destinations, such as Latin America, have risen.
However, the acceptability of recent offers among Southeast Asian buyers remains uncertain. So far, responses have been muted, reflecting concerns over the depreciation of most regional currencies. Since February 1, the Vietnamese dong has weakened by 1.72% against the US dollar, increasing the cost of cargoes denominated in the latter.
A key domestic Indonesian producer has left PP and PE offers largely unchanged between the previous and present weeks, despite the rupiah’s marginal appreciation against the US dollar over the period. A recent influx of competitive cargoes in the distribution market hindered a rebound, with imported homo-PP yarn trading almost IDR 1.9 million/ton below the producer’s price list in the previous week.
Nonetheless, market participants maintain cautious optimism for the near term, anticipating a potential uptick in demand to accompany Ramadan season preparations. Still, this outlook could be challenged by sluggish downstream activity, as end-product customers have strongly resisted increases in purchasing costs over recent months.
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