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Morning Briefing - 12 May 2025This bearish shift has prompted heightened scrutiny in Southeast Asia, where buyers are closely tracking China’s pricing direction to inform their June procurement strategies. |
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CommoPlast
Morning Briefing
12 May 2025
Brent: $63.91 (á $1.07)
WTI: $61.02 (á $1.11)
Naphtha CFR Japan: á $15
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
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Continued Downtrend
The downtrend in China's PE market resumed in the week to 9 May, as international suppliers restarted import price cuts following a brief two-week stabilisation. The latest reductions pushed LLDPE film prices below the $850/tonne mark, underscoring continued softness in domestic demand and sparking renewed concerns across the broader Asian market.
This bearish shift has prompted heightened scrutiny in Southeast Asia, where buyers are closely tracking China’s pricing direction to inform their June procurement strategies. While several global suppliers indicate plans to maintain stable PE offers for June—citing a smaller-than-expected influx of US-origin cargoes—buyers remain unconvinced. Many anticipate further declines, arguing that sellers will need to preserve sufficient regional price gaps to discourage arbitrage and re-export flows from China.
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Chinese PET Bottle Market Extends Rally into Third Week
After a slow start, the Chinese PET bottle market ended the week on a stronger footing, marking its third consecutive weekly gain. The uptrend was underpinned by a rebound in crude oil prices, manageable stock levels, and improving macroeconomic sentiment.
According to data from CommoPlast, spot PET bottle transactions on an EXW China basis rose by CNY50/ton week-on-week. With preparations ramping up ahead of the summer peak season, downstream converters showed a renewed—though cautious—interest in restocking, signalling a gradual return in buying confidence.
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