Morning Briefing - 12 August 2025
CommoPlast
Morning Briefing
12 August 2025
Brent: $66.63 (á $0.04)
WTI: $63.96 (á $0.08)
Naphtha CFR Japan: â $3
Ethylene CFR NEA: á $5
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $5
Propylene CFR China: á $7
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Indonesian PE Market Inched Higher on Tighter Availability
The Indonesian PE market opened the week on a firmer footing as a major domestic producer raised offers by IDR 170,000–180,000/ton ($10–11/ton) across most grades, citing tighter spot availability. The upward momentum followed robust sales earlier this month and was further bolstered by unexpected production disruptions at a competing local facility, prompting the producer to adopt a more assertive pricing stance.
In the distribution market, traders moved quickly to capitalise on the firmer sentiment. HDPE film offers jumped IDR 200,000/ton from the prior week, while LLDPE film surged by IDR 450,000/ton, with some parcels now priced above the producer’s official list.
Still, market participants remained sceptical toward the sustainability of the trend considering the fact that many converters have secured sufficient cargoes and less inclined to pursue higher raw material costs.
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Asian Propylene Market Rebounds as South Korean Outages Tighten Outlook
The Asian propylene market kicked off the week on a firmer note, snapping a six-week losing streak as supply concerns came to the forefront. Spot prices on both FOB South Korea and CFR China bases advanced by $5/ton from the previous trading day.
In South Korea, YNCC has shut its No. 3 naphtha cracker in Yeosu indefinitely due to poor margins. Although the company plans to raise operating rates at its two other crackers, market players remain doubtful that these adjustments will fully offset the production loss from the offline unit.
Adding to the tightening outlook, S-Oil is preparing to shut one of its RFCC units in Onsan at the start of Q4 2025 for maintenance, fuelling expectations of further supply constraints in the months ahead.
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