Morning Briefing - 29 May 2025
CommoPlast
Morning Briefing
29 May 2025
Brent: $64.90 (á $0.81)
WTI: $61.84 (á 0.95)
Naphtha CFR Japan: â $5
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Chinese Major Trimm PP Export Offers, Again.
For the third time this week, a leading Chinese producer has trimmed its export offers for homo-PP, reflecting ongoing weakness on the Dalian Commodity Exchange and sluggish local demand ahead of the Dragon Boat Festival.
The latest adjustment marks a modest reduction of $12/ton compared to the previous week. While the decrease has done little to entice many international buyers, a company source noted that current PP margins across Asia remain razor-thin—or even negative—making further price concessions increasingly unsustainable for producers.
Several deals have been concluded in the adjacent Vietnamese market at below the $900/ton threshold, based on CIF terms, signalling that actual transaction levels are being finalised at additional discounts than those initially offered.
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Indonesian Market Cools as Buyers Retreat From the Market
After a brief surge in replenishment earlier this week, buying momentum in Indonesia has slowed notably, with converters now stepping back amid comfortable inventory levels sufficient to meet production needs over the coming months.
Although key domestic producers have successfully drawn down their stockpiles, the sudden retreat in purchasing interest—combined with continued price weakness in the Chinese market—has cast doubt over the viability of further increases in PP and PE offers.
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