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CommoPlast

Morning Briefing

25 May 2026

Brent: $103.54 (+ $0.96)

WTI: $96.60 (+ $0.25)

Naphtha CFR Japan: â

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: â

Propylene CFR China: â

*Data represent closing prices of the previous trading day

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Indonesian converters hold back purchases as market sentiment deteriorates

Domestic producers in Indonesia accelerate price cuts to close the widening gap with cheaper imports. What initially looked like tactical repricing is increasingly taking on the characteristics of a structural reset, with local sellers forced to sacrifice margins to protect market share against import parity pressure and weak downstream consumption.

Converters remain firmly sidelined as reports of sufficient inventories alongside incoming cargoes already in transit, leaving little urgency for fresh procurement despite softer offers. The broader concern now extends beyond near-term oversupply: the continued depreciation of the Rupiah is beginning to erode purchasing power across the retail and industrial economy.

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China’s April numbers expose widening structural strain across the Asian petrochemical market

China’s April 2026 data confirms that the Iran conflict has fundamentally reshaped the Asian petrochemical landscape. What was previously viewed as a chronic overcapacity market is rapidly tightening into a supply deficit cycle, as Middle Eastern disruptions, elevated freight costs, and regional run cuts squeeze availability across Asia. The impact was far more pronounced than in March, exposing how heavily the region still depends on stable Middle East-linked energy and feedstock flows.

At the same time, the crisis has strengthened China’s position as Asia’s fallback supplier. Years of building reserves capacity are now providing strategic resilience as Chinese producers continue exporting into a market struggling with supply stress and margin compression. The shift in leverage is becoming increasingly clear: China is no longer merely clearing surplus material but increasingly dictating regional supply stability and pricing direction.

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