Morning Briefing - 07 Nov. 2025
CommoPlast
Morning Briefing
07 November 2025
Brent: $63.38 (- $0.14)
WTI: $59.43 (- $0.17)
Naphtha CFR Japan: - $2
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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Southeast Asian PP Market Gains Momentum, But Uncertainty Persists
The PP market in Southeast Asia trended stable to firmer this week, supported by supply disruptions across South Korea, Malaysia, and Vietnam. A major Indonesian producer lifted spot homo-PP offers to the domestic market three times over the week, while several trading houses in Vietnam withdrew price lists to reassess market direction.
Despite the firmer tone, some market participants cautioned that the upside could be short-lived. Chinese suppliers are expected to redirect cargoes to Southeast Asia to plug emerging supply gaps, potentially curbing price gains for regional producers. Adding to the pressure, upstream propylene costs have declined by nearly 8% since their mid-September peak, a factor likely to limit further upward momentum in the near term.
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Indian Producer Cuts Local PE Offers Amid Rising Import Pressure
A major Indian producer surprised the market this week by cutting local PE offers by INR 1,500/ton for HDPE and LLDPE, and by INR 2,000/ton for LDPE, amid sustained pressure from competitively priced imports. The adjustment defied earlier expectations of a steadier trend following the Diwali holidays, when demand was projected to improve.
At the same time, US-origin LLDPE film cargoes were reportedly offered below $800/ton on a CIF India basis, intensifying competition and forcing other suppliers to reassess their pricing strategies. Nevertheless, a measure of optimism surfaced as buyers cautiously resumed replenishment activity after the monsoon season, which could help cushion the market from further declines in the short term.
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