Morning Briefing - 16 July 2025

CommoPlast

Morning Briefing

16 July 2025

Brent: $68.71 (â $0.50) 

WTI: $66.52 (â $0.46)

Naphtha CFR Japan: â $13

Ethylene CFR NEA:  Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: Stable

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Chinese PVC Edged Higher in Malaysia, Sustainability in Question

Import offers for Chinese PVC in Malaysia rose by $5–15/ton from the previous week, buoyed by renewed optimism over Beijing’s latest economic policies. However, the upward adjustment was met with firm resistance from buyers, many of whom cited comfortable stock levels and opted to stay on the sidelines unless suppliers showed greater pricing flexibility.

The rise in Chinese PVC prices is expected to ease some downward pressure on competing regional suppliers in the near term. Nevertheless, industry players remain sceptical over the longevity of the current upswing, viewing it as sentiment-driven rather than demand-led.

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Malaysian PE Offers Increased in Vietnam, but Buyer Response Remains Tepid

A major Malaysian producer has unveiled August PE shipment offers to Vietnam with increases of $20–40/ton from the previous month, citing tightening supply as the key driver. Despite the upward adjustment, buyer response was muted, with several market participants voicing caution over the short-term demand outlook.

Sentiment among Vietnamese buyers has been dampened by the ongoing downtrend in the Chinese local PE market, which has now entered its third consecutive week of losses. As a result, most converters showed little urgency to secure higher-priced cargoes, preferring to adopt a wait-and-see approach until clearer signals emerge.

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