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Morning Briefing - 23 June 2025While sentiment tilted bullish, participants remained cautious, with the central question shifting from whether prices would rise to how far they could go in the near term. |
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CommoPlast
Morning Briefing
23 June 2025
Brent: $78.85 (â $1.84)
WTI: $74.93
Naphtha CFR Japan: á $4
Ethylene CFR NEA: á $10
Ethylene CFR SEA: á $10
Propylene FOB Korea: Stable
Propylene CFR China: á $5
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Geopolitical Turmoil Over the Weekend Puts Southeast Asian Petchem Market on Alert
Trading activity across the Southeast Asian petrochemical market came to a near halt on Monday morning, 23 June 2025, as players moved to the sidelines following a weekend US strike on Iran that rattled global risk sentiment.
Brent crude futures surged to $78.51/barrel by 12:20 PM Malaysian time, extending last week’s gains and fuelling expectations of further cost-push pressure on downstream derivatives. The sudden escalation prompted key regional and local petchem trading houses to hold back from issuing fresh offers, citing heightened uncertainty and the need for further clarity on geopolitical developments.
While sentiment tilted bullish, participants remained cautious, with the central question shifting from whether prices would rise to how far they could go in the near term.
At the time of writing, only a few Chinese suppliers had surfaced with new PP export offers, raising prices by a modest $4–10/ton on the week. Sellers noted that further price adjustments could follow depending on how the macro environment evolves in the days ahead.
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Saudi Producer Kept July PE Offers Largely Stable in Vietnam
In a move that caught some market players off guard, a key Saudi Arabian producer rolled over most July shipment offers for PE film grades to Vietnam, maintaining levels largely unchanged from June. The only exception was a $10/ton increase applied to LDPE film cargoes.
The producer’s restrained pricing strategy stood in contrast to rising upstream costs, driven by firmer crude benchmarks and renewed geopolitical risk. Market sources attributed the decision to subdued downstream demand, as Vietnamese buyers remained hesitant in the face of ongoing uncertainty surrounding US trade policies.
That said, speculation is mounting that the producer may set the final prices above the initial offers, particularly if tensions in the Middle East escalate further.
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