Morning Briefing - 04 June 2025
CommoPlast
Morning Briefing
04 June 2025
Brent: $65.63 (á $1.0)
WTI: $63.41 (á $0.89)
Naphtha CFR Japan: Stable
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Chinese PP, PE Markets Resumed Trading on a Soft Note
China’s PP and PE markets reopened on a weaker footing following the Dragon Boat Festival, with spot offers declining by another CNY 50/ton. A sharper-than-anticipated rise in holiday stock levels and persistent macroeconomic uncertainty dampened sentiment, overshadowing modest gains seen on the Dalian Commodity Exchange.
Looking forward, market participants maintain a conservative stance, monitoring the trade negotiation progress with the US to gauge the demand prospects. The May–July period is traditionally the off-peak season for downstream demand, and recent front-loading from US-based buyers has yet to translate into meaningful raw material demand. Export-oriented converters have been sitting on comfortable end-product inventories and have prioritised clearing finished goods over raising operating rates.
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Indonesian Major Lifted Local PVC Offers Sharply
The Indonesian PVC market registered a sharper-than-expected upswing this week, as a major domestic producer announced fresh offers for June delivery with a $40/ton increase from the previous month. The magnitude of the hike surprised many market participants, given that demand conditions in the local market remain sluggish.
While resistance from local buyers is evident, most market observers do not expect the producer to offer significant concessions, given the robust momentum in export markets. In the meantime, participants are bracing for increased availability of Chinese cargoes in the region, as Indian demand for that origin wanes.
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