Morning Briefing - 03 June 2025
CommoPlast
Morning Briefing
03 June 2025
Brent: $64.63 (á $1.85)
WTI: $62.52 (á $1.73)
Naphtha CFR Japan: á $3
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Rising External Headwinds Pressure PP Market in SEA
The PP market in Southeast Asia continued to face downward pressure this week, as escalating external headwinds undermined sentiment and prompted a cautious, wait-and-see approach among buyers. Trading activity was subdued at the start of the week, with limited new import offers due to public holidays in several countries. Nevertheless, some international suppliers showed increased pricing flexibility, agreeing to discounts in response to weak buying interest.
In Vietnam, a South Korean producer reduced its homo-PP yarn offer by $30/ton from the initial price list. However, the concession failed to significantly stimulate demand, with uptake remaining lukewarm.
Market participants remain focused on a confluence of bearish signals. Renewed US–China trade tensions have reintroduced a degree of uncertainty, while regional supply is expected to rise. An Indonesian plant is set to come online shortly, and a major Malaysian producer is due to resume operations by mid-June, further intensifying the supply outlook.
Adding to the market’s cautious undertone is the looming 9 July expiry of the US’s reciprocal tariff moratorium, which could add further volatility to trade flows and sentiment.
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India’s PVC Market Kickstared June on a Firm Note
India’s PVC market has entered June with renewed strength, following two successive price hikes in May. A major domestic producer implemented a further increase of INR 1,000/ton on spot PVC offers, effective 1 June 2025, underscoring the bullish sentiment that persists despite the approaching monsoon season.
Trading activity remains robust, driven by heightened demand for non-Chinese cargoes as buyers seek to mitigate potential supply disruptions linked to the anticipated enforcement of the Bureau of Indian Standards (BIS) mandate.
With no official confirmation yet from the Indian government regarding the BIS implementation timeline, Chinese suppliers are reportedly adopting a cautious stance—either diverting cargoes to alternative markets or temporarily holding back shipments to India. Market participants are closely watching the situation, as any formal policy announcement could significantly influence regional pricing dynamics in the near term.
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