Morning Briefing - 09 Dec. 2025
CommoPlast
Morning Briefing
09 December 2025
Brent: $62.49 (- $1.26)
WTI: $58.88 (- $1.20)
Naphtha CFR Japan: +$8
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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Asian Propylene Market Extended Gains on Supply Concerns
The Asian propylene market strengthened for a fourth consecutive week, buoyed by rising concerns over near-term supply tightness. Market sentiment was lifted after South Korea’s Lotte Chemical and Hyundai submitted a consolidation proposal to regulators, seeking approval to shut Lotte’s cracker in Daesan and concentrate production at Hyundai’s facility. If endorsed, the move would remove roughly 500,000 tons/year of propylene from the regional balance.
Supply uncertainty was further amplified in Southeast Asia, where ExxonMobil is preparing to shut one of its naphtha crackers on Singapore’s Jurong Island by mid-2026. The planned closure is expected to trim an additional 490,000 tons/year of propylene output.
Despite the firmer tone, several industry participants cautioned that the rally may begin to lose momentum as downstream demand—particularly from the PP sector—remains sluggish. Market participants are closely monitoring policy signals and operational strategies across regional crackers to assess how the evolving supply landscape may shape the market in the weeks ahead.
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Chinese PP Export Offers Slipped as Weak Demand Outweighed Currency Strength
China’s export homo-PP market turned lower again after a brief two-week period of stability, with major producers trimming offers by $5/ton amid persistently weak overseas demand. The renewed softness emerged despite a firmer Yuan, steady upstream costs, and manageable inventories — factors that under normal conditions might have supported a more stable pricing trend. Market participants suggested the latest reductions may reflect producers’ efforts to accelerate cargo outflows ahead of the year-end holiday period.
Trading discussions remained limited, and Chinese suppliers acknowledged increasing challenges in securing interest from key export destinations. Still, most indicated that room for further price cuts appears narrow for now, citing cost considerations and already-thin margins.
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