Morning Briefing - 08 Jul. 2025

CommoPlast

Morning Briefing

08 July 2025

Brent: $69.58 (á $1.28)

WTI: $67.93

Naphtha CFR Japan: â $2

Ethylene CFR NEA:  â $30

Ethylene CFR SEA: â $30

Propylene FOB Korea: â $5

Propylene CFR China: â $10

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Chinese Major Trimmed Export PP Offers Amid Sluggish Sentiment

A leading Chinese PP producer has issued new weekly export offers with a $7/ton reduction from last week, responding to persistent demand weakness both domestically and internationally. The supplier continues to offer volume-based discounts in an effort to stimulate bulk purchasing interest.

However, market reactions have been muted, as buyers remain fixated on the impending US tariff decision. The heightened uncertainty, coupled with an increasingly well-supplied regional market, has kept sentiment subdued across Asia.

“With the macroeconomic outlook still cloudy and supply pressure mounting, the PP market is likely to face further downward pressure in the near term,” commented a regional buyer. The source added, “We foresee Chinese-origin homo-PP slipping below the $900/ton CIF threshold soon. For now, we’re holding back from making fresh purchases.”

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Vietnamese PE Market Remains Steady Despite Looming Supply Concerns

Vietnam’s local PE market opened the week on a largely stable footing, defying mounting concerns over a tighter supply outlook triggered by sharp allocation cuts from a major Saudi producer. According to market participants, sluggish demand remains the key factor restraining any significant upward movement in prices.

“There could be some tightening in specific LLDPE film grades, but overall, supply appears fairly balanced for now,” a market source commented. “The steady flow of Chinese-origin cargoes is keeping buyers cautious and unwilling to chase higher prices.”

Despite the current calm, traders anticipate that the Saudi producer may attempt to raise LLDPE film import offers to Vietnam above the $1,000/ton mark on a CIF basis in the upcoming price release, in response to the recent production disruptions.

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