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Morning Briefing - 17 Mar. 2026Driven by severe domestic supply rationing and firm upstream energy costs, both Malaysian PE and Chinese PET markets have aggressively surged back to historic 2022 price peaks. |
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CommoPlast
Morning Briefing
17 March 2026
Brent: $100.21 (- $2.93)
WTI: $93.50 (- $5.21)
Naphtha CFR Japan: - $7
Ethylene CFR NEA: + $50
Ethylene CFR SEA: + $50
Propylene FOB Korea: - $30
Propylene CFR China: - $40
*Data represent closing prices of the previous trading day
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Malaysia PE breaches historic peak as supply disruptions collide with Middle East tensions
Malaysia’s PE market is entering a critical phase after domestic HDPE film prices breached historic highs last seen during the severe supply shocks of 2022, underscoring how rapidly the market has shifted from tightness to outright supply stress. What initially appeared to be a crude-led rally is increasingly revealing deeper structural fragility, as domestic production disruptions collide with geopolitical turmoil that is constraining feedstock access.
The pressure intensified after a key producer warned customers of potential force majeure while preparing to halt a major HDPE film line with no confirmed restart timeline, forcing reductions in contractual allocations and pushing the market toward scarce spot availability. With import alternatives limited and distribution inventories critically thin, converters already operating at reduced rates are retreating from the market, leaving near-term dynamics increasingly defined by supply rationing rather than active trading.
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China PET exports rip higher, revisiting 2022 levels
Chinese PET export prices are accelerating sharply, with the market surging more than 50% since the rally began in early February. The pace of the climb has now pushed prices back to levels last seen in June 2022 according to CommoPlast’s database, when the global oil shock following the outbreak of the Russia–Ukraine war drove feedstock costs sharply higher.
This time, the rally is again unfolding against a backdrop of geopolitical tension and firm energy markets, reinforcing the upward momentum just as the seasonal summer demand cycle approaches. With crude strength filtering through the polyester chain and no immediate resolution to the current conflict in sight, sentiment across the PET market is increasingly tilted toward further firmness rather than a near-term correction.
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