Morning Briefing - 21 August 2025
CommoPlast
Morning Briefing
21 August 2025
Brent: $66.84 (á $1,05)
WTI: $63.21 (á $0.86)
Naphtha CFR Japan: á $1
Ethylene CFR NEA: á $5
Ethylene CFR SEA: Stable
Propylene FOB Korea: á $5
Propylene CFR China: á $5
*Data represent closing prices of the previous trading day
____________________________________________________________________
Malaysian PP Market Stalls as Buyers Await Fresh Price Guidance
The Malaysian PP market saw trading activity grind to a halt in the week ending 21 August, with participants stepping back after concluding August deals. Sentiment weakened further as speculation mounted that September offers from a local producer could fall by at least MYR 100/ton, in line with subdued fundamentals across the region.
At the same time, market chatter suggested that PrefChem may be facing unexpected production issues at one of its PP units. CommoPlast has not independently verified these reports. While several players dismissed the potential impact, citing ample supply in the domestic market, others stressed that the extent and duration of the disruption could still bear watching.
____________________________________________________________________
Vietnamese PP, PE Cargoes Enter China, Intensifying Market Competition
A good number of Vietnamese PP and LLDPE film cargoes was transacted in China during the first half of the week at relatively competitive price levels, raising fresh concerns about mounting pressure in an already stagnant market.
Market participants noted that beyond sales expansion, the sharp depreciation of the Vietnamese dong against the US dollar in recent weeks has significantly boosted the competitiveness of Vietnamese suppliers in export markets. Still, with naphtha feedstock costs hovering in the high $500/ton range, questions remain over whether producers can maintain current export price levels without eroding margins.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
Your empowering market insight site