Morning Briefing - 01 July 2025
CommoPlast
Morning Briefing
30 June 2025
Brent: $67.61 (â $0.16)
WTI: $65.11 (â $0.41)
Naphtha CFR Japan: á $3
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
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Chinese LDPE Film Market Retreats, Ending Three-Week Rally
China’s domestic LDPE film market has reversed course, slipping steadily over recent trading days and effectively ending a three-week upward streak. The downtrend follows a notable easing in earlier concerns over potential supply disruptions tied to Middle East tensions.
Market participants reported that communication channels with Iranian suppliers have resumed, and with the ceasefire agreement in the region holding thus far, the immediate focus has shifted back to broader supply conditions.
According to data compiled by CommoPlast, spot LDPE film offers on an EXW China basis declined by an average of CNY 175/ton ($24/ton) from the previous week.
Despite the price correction, sentiment in the market remains cautious. “We are still in the traditional low-demand season, and there’s limited incentive for aggressive stockpiling,” a trader commented, adding that the fading urgency among American buyers to front-load cargoes—amid improved trade relations—has also weighed on buying interest.
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Indonesian Producer Holds Steady on PP and PE Offers Despite Softer Market
A leading Indonesian polyolefins producer kicked off the week with unchanged offers for both PP and PE, defying the softer tone observed in the local distribution market since late last week.
According to market participants, the decision reflects the seller’s cautious approach amid persistently high upstream naphtha costs, which continue to pressure production margins.
However, demand remains notably subdued. With several key PP and PE plants in Indonesia, Malaysia, and Vietnam having resumed operations recently, regional supply is expected to rise in July. This outlook has prompted many Indonesian buyers to adopt a wait-and-see stance, anticipating potential price concessions in the near term.
“Buyers are not in a rush,” a local buyer commented. “With more material coming back online, we expect more competitive offers to surface soon.”
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