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Morning Briefing - 06 August 2025China’s domestic homo-PP market continued its downward trajectory, touching its lowest point in over two years, as traders largely brushed aside intermittent concerns over coal supply disruptions |
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CommoPlast
Morning Briefing
06 August 2025
Brent: $67.64 (â $1.12)
WTI: $65.16 (â $1.13)
Naphtha CFR Japan: â $1
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Chinese homo-PP Market Hit 26-Month Lows
China’s domestic homo-PP market continued its downward trajectory, touching its lowest point in over two years, as traders largely brushed aside intermittent concerns over coal supply disruptions that could raise production costs for coal-based producers. Instead, the focus remained firmly on weak supply-demand fundamentals.
Market participants pointed to mounting inventory pressure as a key driver of the downturn, with several trading houses noting that sluggish export activity in recent weeks has left stock levels elevated.
Adding to the bearish tone, competitively priced homo-PP cargoes from Malaysia began making rounds in the Chinese market, fuelling speculation that regional price pressure may persist in the near term.
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Vietnam’s Long Son Petrochemical Returns to Market with Fresh PP and PE Offers
Across Southeast Asia, market participants reported having received fresh PP and PE offers for cargoes originating from Long Son Petrochemical – marking a key milestone as the Vietnamese producer restarts operations after a 10-month shutdown.
The re-entry was widely interpreted as a clear signal that LSP is ready to resume regular supply, but buyers remain cautious amid persistent demand headwinds and already elevated regional availability, particularly for PP.
Attention now turned to the stability of LSP’s operations post-restart.
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