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CommoPlast

Morning Briefing

28 May 2026

Brent: $94.29 (- $5.29)

WTI: $88.68 (- $5.21)

*Data represent closing prices of the previous trading day

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ASEAN PVC margins buckle under wave of competitive Chinese supply

The PVC market in Southeast Asia is entering a more tricky phase of the downturn, where aggressive producer discounts are no longer enough to revive demand. Malaysian buyers continued to retreat to the sidelines through 26 May even as major Indonesian and Thai suppliers slashed June offers repeatedly, reflecting how deeply expectations for further declines have become embedded across the market. Competitive Chinese cargoes are now dictating regional price direction, leaving ASEAN suppliers struggling to regain pricing power despite mounting pressure to move volume.

The squeeze is becoming increasingly unsustainable for regional producers. Ethylene costs, while easing from recent geopolitical highs, remain elevated enough to keep PVC production economics under strain just as realised prices slide sharply lower.

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Malaysian PVC market softens further as ASEAN producers cut offers to chase thin demand

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Asia ethylene market loses momentum as cost support unwinds

Asia’s ethylene market continues to weaken as the geopolitical premium from the Strait of Hormuz disruption fades alongside softer energy markets and weak downstream demand. Prices have declined for eight straight weeks, with lower crude and naphtha costs removing key support and shifting sentiment from supply concerns to demand weakness.

The downturn is spreading across the petrochemical chain, with weak PE and PVC markets in China and Southeast Asia reinforcing cautious buying behaviour and delaying inventory replenishment. Buyers continue to purchase only on immediate requirements as expectations for further declines persist, keeping overall market sentiment firmly bearish.

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Asian ethylene unwinds conflict premiums as crude and naphtha retreat from March peaks

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