Morning Briefing - 20 June 2025
CommoPlast
Morning Briefing
20 June 2025
Brent: $78.85 (á $2.15)
WTI: Holiday
Naphtha CFR Japan: á $10
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $5
Propylene CFR China: Stable
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Chinese LDPE Market Rallied on Supply Concerns
The Chinese LDPE film market has maintained a firm upward trajectory since the start of the week, driven by growing concerns over near-term supply availability.
Market sources cited unconfirmed reports that several PE production facilities in Iran have been taken offline due to heightened military tensions with Israel. While CommoPlast has not independently verified these shutdowns, the news has already sparked a degree of urgency among buyers in China.
Several Chinese importers reported difficulties in reaching their Iranian suppliers, citing telecommunication disruptions in the region. A number of Iranian LDPE cargoes have arrived at major Chinese ports but remain uncleared due to the absence of Telex Releases, further straining spot supply.
According to data compiled by CommoPlast, spot LDPE film prices based on EXW China terms have surged by an average of CNY 400/ton ($56/ton) from the previous week—marking the highest levels since late March 2025. Despite subdued demand in downstream sectors, market participants anticipate the uptrend will persist in the near term, underpinned by the mounting supply-side risks.
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South Korean Supplier Offered Surprised Discounts on PP to Vietnam
In a surprising move, a major South Korean producer has applied a $20/ton discount on import homo-PP offers to Vietnam, finalising deals at levels unchanged from the previous week. The decision defied broader market expectations, particularly as most other origins—especially Chinese cargoes—have been commanding higher prices in response to firm upstream costs.
The unexpected discount positioned the South Korean material more competitively, sparking strong buying interest from Vietnamese converters. Market participants viewed the offer as a timely replenishment opportunity amid signs of a firming short-term outlook.
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