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Morning Briefing - 13 August 2025China’s domestic LDPE film market extended its steady upward trajectory for the fourth consecutive week, although gains remained measured amid subdued consumption. |
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CommoPlast
Morning Briefing
13 August 2025
Brent: $66.12 (â $0.51)
WTI: $63.17 (â $0.79)
Naphtha CFR Japan: â $3
Ethylene CFR NEA: á $2
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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China’s Export Homo-PP Market Extends Losses on Weak Demand, Intensifying Competition
China’s export homo-PP market continued to retreat this week, extending last week’s losses as demand remained sluggish both domestically and abroad, while competitive pressures mounted. At least two major Chinese PP producers trimmed their latest offers by $3–5/ton from the previous week, with one signalling readiness to grant deeper concessions for large-volume transactions.
Southeast Asia — a key outlet for Chinese PP exports — has seen muted trading for several weeks, with buyers adopting a wait-and-see approach in anticipation of additional supply from Malaysia’s PrefChem and Vietnam’s Long Son Petrochemical, which could push prices lower.
Adding to the bearish outlook, China is set to commission three new PP production lines between August and October 2025, injecting a further 1.3 million tons per year of capacity into an already glutted market. Without a marked improvement in downstream demand, Chinese PP exporters are likely to face sustained price pressure in the near term.
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Chinese LDPE film Market Cautiously Firms Up on Tighter Import Arrivals
China’s domestic LDPE film market extended its steady upward trajectory for the fourth consecutive week, although gains remained measured amid subdued consumption. Spot LDPE film prices on an EXW China basis have risen by around CNY 200/ton ($28/ton) over the past month, supported primarily by a notable reduction in import arrivals, particularly from Iran.
The supply squeeze has yet to spark a strong rally, with buyers still cautious in light of weak downstream demand. Attention is now turning to the agricultural film sector, which typically sees peak consumption between October and November. Should buyers move to restock ahead of any supply recovery, market sentiment could strengthen and pave the way for sharper price increases.
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