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Morning Briefing - 18 June 2025After a strong rebound earlier in the week, sentiment in China’s PP and PE markets has turned cautious, as participants pause to evaluate the durability of the recent gains and the outlook for downstream demand. |
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CommoPlast
Morning Briefing
18 June 2025
Brent: $76.45 (á $3.22)
WTI: $74.84 (á $3.07)
Naphtha CFR Japan: á $2
Ethylene CFR NEA: á $20
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Chinese PP, PE Market Turned Cautious
After a strong rebound earlier in the week, sentiment in China’s PP and PE markets has turned cautious, as participants pause to evaluate the durability of the recent gains and the outlook for downstream demand.
Trading activity has visibly slowed, despite continued strength on the Dalian Commodity Exchange and ongoing concerns over potential supply disruptions from Iran—particularly for LDPE and methanol.
Market sources note that while geopolitical tensions may lend underlying support to prices, the seasonal lull in demand from key sectors such as agricultural film and packaging could limit further near-term upside.
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Malaysian PE Fell Sharply in Vietnam
Despite rising crude oil futures and strengthening naphtha costs, a major Malaysian producer has sharply reduced its July LDPE offers to Vietnam, slashing prices by $60/ton compared to June levels.
According to market sources, the unexpected drop stems from mounting pressure within the LDPE segment, driven largely by sluggish EVA demand. As a result, producers with swing capacities are increasingly shifting output toward LDPE, further weighing on prices.
Additional discounts of $10–20/ton were granted during negotiations, leading to a gôd number of deals being finalized. Interestingly, the recent rebound in China's LDPE market and firm upstream costs appear to have boosted confidence among Vietnamese buyers, prompting a wave of replenishment amid expectations for a firmer market outlook ahead.
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