Morning Briefing - 25 June 2025
CommoPlast
Morning Briefing
25 June 2025
Brent: $67.14 (â $4.34)
WTI: $64.37 (â $4.14)
Naphtha CFR Japan: â $56
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
____________________________________________________________________
Taiwanese Major Hikes July PVC Offers to India, Faces Lukewarm Response
A key Taiwanese producer has sharply raised July PVC shipment offers to Asia, with prices to India surging by $45/ton from June, and other regional markets seeing more modest increases of around $10/ton. The hike for India was largely driven by higher ocean freight rates, but market participants questioned the timing, citing a lack of supporting fundamentals.
In India, the onset of the monsoon season—traditionally a slow period for construction activity—has weighed heavily on sentiment. Compounding the resistance is the six-month extension of the BIS implementation deadline, which has removed near-term urgency for restocking. Meanwhile, Chinese-origin PVC cargoes have surfaced at sub-$700/ton CIF levels, further undermining the competitiveness of the Taiwanese producer’s latest offer.
As a result, buyers in India have shown little enthusiasm, with several sources casting doubt on the supplier’s ability to secure deals at the newly announced levels. Market players anticipate negotiations may follow, but any firm commitment from Indian importers could hinge on price adjustments and broader market clarity.
____________________________________________________________________
Asian Polyolefin Market Deflated at Easing Middle East Tensions
Trading sentiment across the Asian polyolefin market slumped on Tuesday, weighed down by reports of a ceasefire between Iran and Israel that triggered a sharp correction in global crude oil benchmarks, now at multi-week lows. The abrupt shift in the geopolitical backdrop prompted buyers to adopt a wait-and-see approach, stalling fresh procurement activity.
In China, import traders moved swiftly to adjust prices, offering discounts of $15–20/ton on overseas-origin cargoes and trimming local offers by CNY 50–100/ton. Despite the price relief, downstream response remained subdued, reflecting widespread caution over near-term demand.
Southeast Asian markets were caught in a pricing dilemma. July shipment offers from key Middle Eastern suppliers emerged with notable increases, but the disconnect between firm upstream costs and a fragile demand outlook left buyers hesitant. Ongoing volatility in the energy complex, coupled with external uncertainties surrounding US trade relations, further dampened buying appetite.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site