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Morning Briefing - 06 Mar. 2025China has called on domestic refineries to scale back fuel production and ramp up petrochemical output, aligning with the energy sector’s evolving landscape. The directive, issued during the third session of the 14th National People’s Congress (NPC), reflected the rapid expansion of electric vehicles (EVs), which has reshaped domestic consumption patterns for diesel and gasoline. |
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CommoPlast
Morning Briefing
06 March 2025
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Switch Focus to Petrochemical
China has called on domestic refineries to scale back fuel production and ramp up petrochemical output, aligning with the energy sector’s evolving landscape. The directive, issued during the third session of the 14th National People’s Congress (NPC), reflected the rapid expansion of electric vehicles (EVs), which has reshaped domestic consumption patterns for diesel and gasoline.
Looking ahead, market participants closely monitor the executive success of this shift. With state-owned refiners dominating the market, widespread compliance is expected. However, independent refiners may come under increasing pressure, already contending with shrinking margins and reduced tax incentives after previous government initiatives to rein in oversupply.
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Indonesian PVC Producer rolled over March Offers
An Indonesian PVC producer has opted to roll over its March offers, aligning with a pricing strategy set earlier by a Taiwanese major for the Southeast Asian market. However, the move has encountered pushback from buyers citing weak end-product demand, exacerbated by the seasonal slowdown during Ramadan. With Eid al-Fitr approaching at the end of the month, trading activity is expected to remain muted in the near term.
On the global stage, market discussions have shifted toward April price expectations following the completion of March transactions. Sentiment remains cautious, with industry participants anticipating potential downward pressure. A confluence of bearish factors—including rising trade barriers, ample global supply, and lackluster demand—is keeping market players on edge.
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