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Morning Briefing - 18 Dec. 2025After several days of intense negotiations, a major Saudi Arabian producer has conceded an additional $30–40/ton discount on January LLDPE film shipments to Vietnam. |
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CommoPlast
Morning Briefing
18 December 2025
Brent: $59.68 (+ $0.76)
WTI: $55.94 (+ $0.67)
Naphtha CFR Japan: - $3
Ethylene CFR NEA: Stable
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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Saudi major agrees to steep January LLDPE film discounts to Vietnam
After several days of intense negotiations, a major Saudi Arabian producer has conceded an additional $30–40/ton discount on January LLDPE film shipments to Vietnam. The move has pushed some grades below the $800/ton threshold, marking the lowest levels seen since June 2020.
Market response has been broadly positive, with deals reported as having gained acceptance among buyers. These transactions have since set a new reference point for ongoing price negotiations, not only with other suppliers to Vietnam but also across the wider regional market.
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Asian PP Market Steadies As Sellers Hold Firm; Has A Floor Emerged?
The Asian PP market has remained on a steady footing for several consecutive sessions, as both regional and international suppliers resisted further price concessions amid intensifying margin pressure despite sluggish buying interest. With most buyers having largely completed restocking ahead of Lunar New Year-related demand, market participants have increasingly opted to remain on the sidelines while reassessing the near-term outlook.
Market discussions indicate that the regional PP market may have temporarily found a floor. However, the sustainability of this stability remains uncertain, particularly given ample availability in China and an unclear demand trajectory for the coming quarter.
While Muslim-majority markets such as Indonesia and Malaysia are expected to see relatively steady downstream demand entering January, as converters prepare for staggered festivities, demand in China and Vietnam is likely to taper gradually. Overall sentiment remains cautious at the time of writing.
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