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Morning Briefing - 22 August 2025Chinese PP exporters trimmed homo-PP offers toward the weekend, pushing prices below the $850/ton threshold for the first time, despite support from a weaker US dollar. |
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CommoPlast
Morning Briefing
22 August 2025
Brent: $67.67 (á $0.83)
WTI: $63.52 (á $0.81)
Naphtha CFR Japan: á $1
Ethylene CFR NEA: á $9
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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Chinese homo-PP Export Breached Below $850/ton Mark
Chinese PP exporters trimmed homo-PP offers toward the weekend, pushing prices below the $850/ton threshold for the first time, despite support from a weaker US dollar. On the bright side, a considerable volume of cargoes changed hands at these lower levels.
The domestic spot market held relatively steady, but sentiment was unsettled following reports that CNOOC Ningbo Daxie has brought two new PP plants online this week. While it remains to be seen whether the producer can stabilise operations at the mega complex, concerns over mounting competition at home and abroad have already weighed heavily on confidence.
Fears of accelerated price erosion in the coming weeks prompted other sellers to adopt a more aggressive pricing stance, intensifying the downtrend in the export arena.
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Chinese PET bottle Market Continued to Search for Directions Amid Demand Weakness
The Chinese PET bottle market saw erratic price swings during the week ending 21 August, with sellers reacting mainly to fluctuations in upstream costs amid a lack of clear demand cues.
Data from CommoPlast indicated that the week began with a $5–10/ton reduction in export offers, only for prices to rebound shortly after on news of petrochemical reform measures in South Korea. By the time of reporting, fresh offers reflected a $10–20/ton increase from early in the week.
Even so, underlying demand continues to soften as the market moves deeper into the seasonal lull. Market participants expect food packaging converters to return for replenishment in the fourth quarter, ahead of festive-season requirements.
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