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Morning Briefing - 19 Jan. 2026China’s PP and PE markets ended the week to 16 January 2026 on a weaker footing after a sharp correction on the Dalian Commodity Exchange triggered an abrupt pullback in buying interest. |
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CommoPlast
Morning Briefing
19 January 2026
Brent: $64.13 (+ $0.25)
WTI: $59.44(+ $0.25)
Naphtha CFR Japan: - $8
Ethylene CFR NEA: - $20
Ethylene CFR SEA: - $10
Propylene FOB Korea: + $5
Propylene CFR China: - $5
*Data represent closing prices of the previous trading day
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Chinese PVC suppliers extend export rally on regulatory shift risk
Chinese PVC exporters lifted offers for a fifth consecutive week, pushing through aggressive price increases despite ongoing weakness in Dalian Commodity Exchange futures and stagnant domestic spot prices. Market participants said the strategy reflects a pre-emptive response to an impending regulatory change that is expected to materially raise export costs for Chinese producers.
Buyer acceptance remained limited. Although Indian demand has improved following the end of the monsoon season and a partial drawdown of earlier stockpiles, resistance persisted to offers priced above $600/ton FOB China.
Export prices may continue to firm in the near term as sellers attempt to front-run higher compliance costs. However, muted buying interest and fragile domestic fundamentals are likely to cap further upside.
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Futures correction haltes PP, PE rally in China
China’s PP and PE markets ended the week to 16 January 2026 on a weaker footing after a sharp correction on the Dalian Commodity Exchange triggered an abrupt pullback in buying interest. Sellers responded by trimming spot offers by CNY 50–100/ton to stimulate demand.
Market participants largely viewed the retreat as a technical correction following several weeks of gains, though some flagged the risk that prices may be approaching a cyclical peak.
Attention has now shifted to futures performance in the coming week, which is expected to provide clearer direction for near-term PP and PE pricing.
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