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Morning Briefing - 17 Mar. 2025Vietnam’s homo-PP market continued its downward trajectory for a second consecutive week, weighed down by an influx of competitively priced Chinese cargoes and persistently weak domestic demand. Buyers remained cautious, curbing restocking efforts amid growing concerns over further price erosion. |
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CommoPlast
Morning Briefing
17 March 2025
Brent: $70.58 (á $0.70)
WTI: $67.18 (á $0.63)
Naphtha CFR Japan: á $2
Ethylene CFR NEA: â $5
Ethylene CFR SEA: Stable
Propylene FOB Korea: â $15
Propylene CFR China: â $15
*Data represent closing prices of the previous trading day
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Vietnamese homo-PP Market Extended Declines
Vietnam’s homo-PP market continued its downward trajectory for a second consecutive week, weighed down by an influx of competitively priced Chinese cargoes and persistently weak domestic demand. Buyers remained cautious, curbing restocking efforts amid growing concerns over further price erosion.
Adding to the pressure, Nghi Son Refinery and Petrochemical (NSRP) issued two consecutive spot tenders, signaling supply excesses even after fulfilling contractual obligations. This fueled speculation that the producer may be operating at higher-than-usual production levels, exacerbating concerns over a potential supply glut, especially with Hyosung Vina returning to the market following the recent turnaround.
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Indonesian PPBC Remained on a Firmer Track
Indonesia’s PP Block Copolymer (PPBC) market remains on an upward trajectory, driven by tightening supply, particularly due to production disruptions in South Korea. However, aggressive price hikes from suppliers have met significant pushback from buyers, who are increasingly concerned about deteriorating production margins.
A Singapore-based producer raised its offers by $40/ton from previous levels, but resistance from buyers has been stiff. Market participants remain cautious, citing ongoing uncertainties surrounding Indonesia’s anti-dumping duty investigation.
While the supply conditions from South Korea are not expected to improve anytime soon, buyers are reluctant to engage at current price levels, especially with the Eid al-Fitr holiday approaching. Many have opted to delay purchases rather than absorb further cost pressures, signaling a potential slowdown in demand momentum.
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