Morning Briefing - 16 Oct. 2025
CommoPlast
Morning Briefing
16 October 2025
Brent: $61.91 (â $0.48)
WTI: $58.27 (â $0.43)
Naphtha CFR Japan: â $4
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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China-US Trade Tension Flare-Up Spurs Caution in PE Market
Renewed trade tension between China and the US has rekindled uncertainty across the PE market, with reports of order cancellations for previously booked US cargoes prompting buyers and sellers to reassess near-term prospects.
Although market sources described the number of cancellations as “minor and manageable” so far, several US suppliers have suspended fresh offers this week to evaluate the situation. The move has stirred concern among Chinese buyers, who are now exploring alternative sourcing options—particularly from the Middle East and Southeast Asia—to maintain steady inventory levels.
Market participants said US-origin cargoes may increasingly be redirected to other regions as the year-end approaches, adding further complexity to trade flows. The development is also being closely watched in Southeast Asia, where buyers are eyeing potential opportunities to negotiate deeper discounts on diverted US materials.
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Taiwanese Major Cuts November PVC Offers Sharply as Demand Slumps
A major Taiwanese producer has announced November PVC shipment offers with steep reductions of $35–40/ton from the previous month, marking a clear reversal of earlier efforts to stabilize prices. The sharper-than-expected cuts were attributed to persistent demand weakness and mounting inventory pressure across key markets.
Initial feedback from Indian buyers has been largely muted, with many adopting a wait-and-see stance amid renewed US–China trade tensions and elevated post-holiday stock levels in China—factors that continue to cast a shadow over regional sentiment in the near term.
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