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Morning Briefing - 12 May. 2026Hengli’s international trading footprint is set for an abrupt unwind, signalling another tightening in sanctioned petrochemical flows out of China. |
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CommoPlast
Morning Briefing
12 May 2026
Brent: $104.21 (+ $2.93)
WTI: $98.07 (+ $2.65)
Naphtha CFR Japan: á
Ethylene CFR NEA: Stable
Ethylene CFR SEA: á
Propylene FOB Korea: Stable
Propylene CFR China: â
*Data represent closing prices of the previous trading day
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Hengli’s Singapore unit wind-down signals further squeeze on China export channels
Hengli’s international trading footprint is set for an abrupt unwind, signalling another tightening in sanctioned petrochemical flows out of China. Hengli Petrochemical International, the Singapore-based trading arm of Hengli Petrochemical (Dalian), is expected to cease operations by end-May, marking the effective dismantling of a key offshore conduit for oil and petrochemical derivatives after US sanctions were imposed last month over alleged Iranian crude purchases.
The move underscores how quickly compliance risk is forcing a retrenchment of cross-border trading structures, particularly those reliant on offshore hubs to intermediate sanctioned-linked flows. The group’s ownership reshuffle, which reduced the sanctioned refinery’s stake to 5% while transferring control to a local state-linked entity, highlights attempts to ring-fence exposure to international sanctions.
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Indonesia’s PP and PE market on a path of stabilization as supply fears ease, imports weigh
Indonesian major price list movements are showing early signs of stabilisation after weeks of sharp correction, as domestic producers slow price cuts following the gradual unwinding of the Strait of Hormuz-driven panic premium. Improved supply visibility after CAP lifted its force majeure has eased shortage fears, while cheaper Chinese and regional imports continue to cap domestic pricing upside. The market remains structurally fragile, with import arbitrage still favouring foreign cargoes and limiting the scope for local producers to reassert pricing power.
Read full story:
Indonesian major moderates spot price cuts but trims contract levels as market seeks stability
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