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Morning Briefing - 30 Dec. 2025The Chinese PVC market extended its recovery into a second consecutive week in the period to 26 December 2025, with prices stabilising to firmer on the back of renewed policy optimism. |
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CommoPlast
Morning Briefing
30 December 2025
Brent: $61.94 (+ $1.30)
WTI: $58.08 (+ $1.34)
Naphtha CFR Japan: - $8
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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Chinese PVC Market Sustained a Firming Trend as Policy Optimism Grows
The Chinese PVC market extended its recovery into a second consecutive week in the period to 26 December 2025, with prices stabilising to firmer on the back of renewed policy optimism. However, suppliers largely refrained from aggressive price adjustments, with downstream demand remaining subdued and limiting the upside.
In its newly unveiled 2026–2030 Five-Year Plan, the Chinese government reiterated its commitment to stabilising the property sector, positioning 2026 as a critical starting point for implementation. These policy signals lent support to major PVC futures contracts on the Dalian Commodity Exchange, providing a psychological anchor for the spot market. Nonetheless, scepticism persisted across the market, with participants pointing to the absence of tangible improvements in downstream order flows or a sustained recovery in end-user confidence.
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Southeast Asian PP Market Slips as Supply Pressures Re-emerge
The Southeast Asian PP market came under renewed pressure as the recent rally began to lose momentum, with spot offers for yarn and injection grades in Indonesia and Vietnam retreating amid growing concerns over an improving regional supply outlook.
In northern Vietnam, several trading houses moved quickly to liquidate on-hand inventories at lower price levels, wary that domestic availability could rise sharply in the weeks ahead. The selling pressure reflected expectations of uninterrupted output, as all local PP plants were reported to be operating at normal rates, eroding confidence in the market’s ability to sustain earlier gains.
Indonesia followed a similar trajectory. A major local trading house offered localised Malaysian homo-PP at IDR 150,000/ton below the previous week’s perceived market floor, signalling a clear shift in pricing dynamics. With Malaysia’s PRefChem understood to have resumed operations, market participants increasingly expect additional inflows to bridge any supply gaps created by the disruptions at domestic plants, reinforcing downside risks and tempering near-term price expectations.
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