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Morning Briefing - 28 Jan. 2026That said, the widened price gap is beginning to reopen arbitrage opportunities for more competitively priced Chinese LLDPE film into Vietnam, a development that could intensify competitive pressure in the weeks ahead. |
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CommoPlast
Morning Briefing
28 January 2026
Brent: $67.57 (+ $1.98)
WTI: $62.39 (+ $1.76)
Naphtha CFR Japan: -$5
Ethylene CFR NEA: -$5
Ethylene CFR SEA: Stable
Propylene FOB Korea: +$5
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Malaysian Major Announced Local PP, PE Offers with Smaller-Than-Expected Hikes
A major Malaysian producer has rolled out higher PP and PE offers to the domestic market, marking the first broad-based increase in seven months. Prices were lifted across nearly all grades, a move widely anticipated by the market amid constrained local supply, steady downstream demand and firm regional sentiment.
While near-term support for both PP and PE is expected to persist, discussions in the market point to a more cautious outlook beyond February. Many buyers continue to limit forward commitments, citing concerns that finished goods demand could soften significantly from March onwards.
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Another Saudi Major Rolls Out Sharply Higher February PE Offers to Vietnam
Another Saudi Arabian producer has released February PE offers to Vietnam with pronounced increases from the previous month, capitalising on firmer sentiment in China and growing supply-side risks. The aggressive pricing stance, however, has met stiff resistance from buyers, leaving most negotiations at an impasse.
Market sources said the producer is unlikely to grant meaningful concessions despite the pushback, underscoring its confidence in regional fundamentals. That said, the widened price gap is beginning to reopen arbitrage opportunities for more competitively priced Chinese LLDPE film into Vietnam, a development that could intensify competitive pressure in the weeks ahead.
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