Morning Briefing - 07 Jul. 2025
CommoPlast
Morning Briefing
07 July 2025
Brent: $68.30 (â $0.30)
WTI: Holiday
Naphtha CFR Japan: á $1
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
____________________________________________________________________
Indonesian Major Slashes Local PP, PE Prices Amid Mounting Market Pressures
In an unexpected move, a major Indonesian producer sharply reduced local PP and PE prices on the final trading day of last week, reversing its earlier stance to keep offers steady. Market sources attributed the decision to intensifying competitive pressure and continued weakness in domestic demand.
The steep price cuts are set to heighten competition across the board, putting both local traders and overseas suppliers under renewed pressure to stay competitive. Meanwhile, several mid- to large-scale converters have signalled potential interest in re-entering the market—particularly if further discounts materialise in the coming days.
While the domestic market remains under pressure, sources suggest the producer may pursue regional export sales more aggressively in the near term, particularly to China and Vietnam following mass order cancellation from a Saudi producer in these markets.
____________________________________________________________________
Unexpected Shutdown Forced Saudi Producer To Cut PE Allocations
A major Saudi Arabian producer has significantly reduced PE allocations to China and Vietnam by 30–50% following an unplanned shutdown at its integrated complex in Al Jubail. The disruption affects a 1.5 million tons/year cracker and downstream PE units with a combined capacity of 1.92 million tons/year. The duration of the outage remains unclear, fuelling market uncertainty across Asia.
In Vietnam, local traders have already begun limiting sales of affected PE grades in anticipation of tightening supply. However, efforts to lift domestic selling prices have met strong resistance, with buyers showing little urgency to commit at higher levels.
In China, the supply disruption has triggered a noticeable uptick in replenishment activities as traders scramble to secure cargoes. Yet, it remains to be seen whether this buying interest will translate into a sustained price recovery, especially amid persistent macroeconomic headwinds and sluggish downstream demand.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site