Morning Briefing - 27 May 2025
CommoPlast
Morning Briefing
27 May 2025
Brent: $67.64 (â $0.04)
WTI: $61.53 (Stable)
Naphtha CFR Japan: á $6
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: â $10
Propylene CFR China: â $10
*Data represent closing prices of the previous trading day
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Opened on Soft Notes
The Chinese polypropylene (PP) and polyethylene (PE) markets began the week on a subdued footing, with spot offers easing by an average of CNY 50/ton. This downturn is driven by weakening demand and a bearish trend in futures contracts on the Dalian Commodity Exchange.
Despite a temporary 90-day tariff truce and a surge in rush orders from American buyers, domestic converters continue to adopt a cautious approach to raw material replenishment. Market participants are now closely monitoring the potential for pre-holiday restocking activity ahead of the Dragon Boat Festival, which falls between 31 May and 2 June 2025.
On the import side, Middle Eastern LLDPE film prices once again dipped below the $850/ton mark, reversing recent gains as demand support wanes.
“Even with the Yuan strengthening against the US dollar—a factor that typically boosts import interest—buyers remain notably conservative,” an international trading house commented.
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Indonesian PP, PE Markets Rebounded
Following eight consecutive weeks of tracking the softening trend, the Indonesian PP and PE market staged a decisive rebound on the first trading day of the week as a major local producer implemented two successive price increases within a single trading day.
While many players view the recent rebound as a potential turning point, uncertainty continues to hover over the pace and extent of recovery. Ongoing volatility in global trade policy remains a headwind, fostering a cautious tone across the Asian petrochemical sector and potentially limiting the upside in the coming weeks.
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