Morning Briefing - 24 June 2025
CommoPlast
Morning Briefing
24 June 2025
Brent: $71.48 (â $5.53)
WTI: $68.51 (â $5.33)
Naphtha CFR Japan: â $5
Ethylene CFR NEA: á $10
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $35
Propylene CFR China: á $35
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Crude Oil Nosedived Amid Easing Supply Fears
Global crude oil benchmarks tumbled over 7% on Monday, 23 June, after Iran delivered a measured response to recent US airstrikes, notably avoiding any damage to energy infrastructure. The restraint eased market anxieties over a potential disruption to Middle East oil supplies, triggering a broad sell-off in crude futures.
The steep decline wiped out nearly all war-risk premiums built over the past ten days, sending prices back to levels last seen on 12 June—prior to Israel’s initial strikes on Iran.
At the time of writing, both Brent and WTI continued to slide amid reports that Iran and Israel had reached a temporary ceasefire agreement—further reinforcing the market’s risk-off sentiment.
In the downstream polyolefins market, Asian PP and PE participants are bracing for modest price corrections in response to the plunging energy complex. However, most anticipate a measured downtrend rather than a sharp pullback, citing persistent uncertainty surrounding the durability of the ceasefire.
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India defers BIS mandate on PVC, PP
India has postponed the implementation of its Bureau of Indian Standards (BIS) Quality Control Order (QCO) on PP and PVC to 24 October and 24 December 2025, respectively, according to an official notice from the Ministry of Chemicals and Fertilizers. This marks the third extension of the compliance deadline, highlighting persistent challenges in enforcing the mandate across complex supply chains.
Market players in India’s PVC sector have grown increasingly wary in recent weeks amid ambiguity surrounding the certification timeline. The regulatory uncertainty has discouraged purchases from select origins, inadvertently pushing prices higher. With the latest deferment, attention is shifting to broader market forces—including evolving global trade policies and rising geopolitical tensions in the Middle East—that may further shape the trading landscape in the coming months.
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