Morning Briefing - 11 June 2025
CommoPlast
Morning Briefing
11 June 2025
Brent: $66.87 (â $0.17)
WTI: $64.98 (â $0.31)
Naphtha CFR Japan: á $6
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $10
Propylene CFR China: Stable
____________________________________________________________________
Bearish Sentiment Dragged Asian Propylene Trades
The Asian propylene market extended its downtrend this week, with prices plunging to their lowest levels since June 2023. Despite a backdrop of rising energy costs, the market's sharp decline underscored ongoing demand fragility and a prevailing cautious sentiment among buyers.
On Monday, 9 June, export prices for propylene on an FOB South Korea basis dropped by $45/ton, while CFR China values declined by $25/ton, reflecting the region’s bearish mood.
Downstream, the PP market remains under pressure, weighed down by sluggish demand and ample supply across Asia. Even with reduced operating rates and several commercial shutdowns in Southeast Asia, PP prices have shown limited upside. Nonetheless, market participants noted that sharp price cuts similar to those seen in the propylene market are unlikely for homo-PP, as most producers are already operating on razor-thin margins.
___________________________________________________________________ _
Indonesian PE Market Firmed Up on Tightened Supply Outlook
Following an extended weekend holiday, a major Indonesian producer decided to raise local PE offers by IDR 330,000/ton ($20/ton) from the previous week while keeping PP largely unchanged. Market sources attributed the upward adjustments to a combination of limited inventory pressure—stemming from recent destocking activity—and a tightening supply outlook driven by an unplanned shutdown at another domestic plant.
Despite the upward momentum, Indonesian buyers remain cautious about the sustainability of the price increases. Attention is now turning to macroeconomic developments, particularly ongoing trade negotiations with the United States. Any positive resolution is expected to lift market sentiment and support the firmer tone.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site