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Morning Briefing - 2 July 2026Chinese polyolefin export prices into Southeast Asia extended their slide even as PP and LLDPE futures on the Dalian Commodity Exchange rebounded, as sellers cut price lists aggressively to defend market share ahead of July shipments. |
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MORNING BRIEFING
CommoPlast Thursday, 2 July 2026
commoplast.com
MARKET MOVEMENTS
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Brent CRUDE · $/BBL |
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WTI CRUDE · $/BBL |
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71.57 |
68.58 |
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▼1.38 |
▼0.92 |
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▼ Naphtha CFR JAPAN |
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— Ethylene CFR NEA |
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— Ethylene CFR SEA |
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— Propylene FOB KOREA |
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— Propylene CFR CHINA |
Closing prices, previous trading day. Monomers show direction only.
TODAY’S DEVELOPMENTS
POLYPROPYLENE · SOUTHEAST ASIA
Chinese PP export offers to Southeast Asia slip further despite firmer futures
Chinese polyolefin export prices into Southeast Asia extended their slide even as PP and LLDPE futures on the Dalian Commodity Exchange rebounded, as sellers cut price lists aggressively to defend market share ahead of July shipments. Homo-PP on FOB China terms, has now fallen for three consecutive weeks to below $1,000/ton, while elevated inventory across Southeast Asian converters continues to cap buying interest as the region works through stock built up during earlier demand-driven purchasing.
The move has been sharpened by congestion at a major Saudi complex diverting cargoes elsewhere, alongside a steep cut to a key regional feedstock benchmark and a prolonged pullback in propylene. With costs still soft and Saudi supply threatening to redirect back into Asia, sentiment points to continued downward pressure on Chinese export offers in the near term.
Read full story:
POLYPROPYLENE · ASIA
New African PP supply diverts into the region amid bloated market concerns
A major African producer is redirecting export volumes into Southeast Asia after geopolitical disruption to traditional Atlantic shipping routes made Western outlets uneconomical. Initial homo-PP yarn indications have surfaced well below prevailing regional levels, with traders lowering minimum lot sizes to stimulate liquidity while local buyers push back with even more aggressive bids.
The volume lands in a region already grappling with a weak backdrop, and its arrival threatens to add a meaningful structural surplus to an already oversupplied market.
Read full story:
Dangote commercial run accelerates as prime West African PP cargoes penetrate Asian markets
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