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Morning Briefing - 02 September 2026Chinese export prices for PP, PE and PVC jumped sharply into September, as a domestic futures rally collided with depleted monthly allocations and firmer crude. |
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MORNING BRIEFING
CommoPlast Wednesday, 02 September 2026
commoplast.com
MARKET MOVEMENT
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Brent CRUDE · $/BBL |
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WTI CRUDE · $/BBL |
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94.65 |
90.22 |
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▲4.16 |
▲4.46 |
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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
PLANTS · SOUTH KOREA
LDPC-HD Hyundai merger to squeeze South Korean ethylene and PP supply into Q4
South Korea's petrochemical landscape shifts on 2 September as Lotte Daesan Petrochem completes its merger into HD Hyundai Chemical, emerging as H&L Advanced, with the transition bringing a temporary wind-down across several cracker and downstream units. The consolidation removes over half of combined ethylene and propylene capacity from the site during the transition window, alongside meaningful cuts to PP and HDPE output, while LLDPE and LD/EVA lines stay unaffected.
Management has signalled intent to keep supply as stable as possible, but restart timelines remain unconfirmed, leaving buyers reliant on the affected lines to plan around near term sourcing gaps. Expect regional PE, PP and BTX-linked availability to tighten into the fourth quarter, with the market watching for restart clarity as the key signal for when supply normalises.
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POLYMERS · CHINA
Saudi Aramco lifts September LPG CP as US-Iran tensions rattle Middle East supply
Chinese export prices for PP, PE and PVC jumped sharply into September, reversing weeks of freight-driven discounting as a domestic futures rally collided with depleted monthly allocations and firmer crude. PP offers have broken through key thresholds on tight prompt availability, while PE and PVC posted similarly aggressive gains as regional deficits pull material into Southeast Asia. Producers are showing little appetite to concede on price, even as the pace of the increases has slowed spot transaction volumes.
The pre-Golden Week and post-monsoon demand period is crucial barometer on whether buyers would absorb the new price floors or the market stalls, with a lack of fresh volume support pointing to a near term pullback.
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