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Morning Briefing - 25 February 2026The Chinese polyolefin market reopened after the Lunar New Year break confronting a familiar yet sharper divergence between rising futures and abundant physical supply. |
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CommoPlast
Morning Briefing
25 February 2026
Brent: $70.77 (- $0.72)
WTI: $65.63 (- $0.68)
Naphtha CFR Japan: - $1
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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Firmer futures greet China’s post-holiday return, but unreturned market blur direction
The Chinese polyolefin market reopened after the Lunar New Year break confronting a familiar yet sharper divergence between rising futures and abundant physical supply.
Spot market activity remained subdued, with many converters still on holiday and expected to gradually re-enter the market. May 2026 futures on the Dalian Commodity Exchange advanced, with PP and LLDPE contracts posting notable gains, prompting sellers to lift offers. However, actual transactions remained extremely limited.
In the export market, major suppliers raised homo-PP offers by around $15/ton, aiming to capitalise on stronger offshore demand despite sluggish domestic fundamentals.
For more details on this story: China’s polyolefin futures reopens firmer after Lunar New Year, but domestic trading stays subdued
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Higher Saudi PE offers test Vietnam buyers as rally is met with resistance
Two leading Saudi producers have launched March PE negotiations in Vietnam on a firmer footing, extending the pre-holiday uptrend and testing the market’s tolerance for higher replacement costs. The price increases, supported by constrained regional supply and disciplined allocations, indicate that sellers remain confident in their leverage at the start of the new cycle.
Yet resistance is building. Trading houses are relying on comfortable inventories and deferring fresh purchases, particularly as offers hover above the $900/ton mark. The market is currently in a tug-of-war, with leverage increasingly shifting toward buyers, suggesting that further upside may be limited as demand elasticity becomes more apparent.
Full story: Saudi majors test Vietnam PE ceiling with March hikes amid tight allocation
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