Morning Briefing - 07 Jan. 2026
CommoPlast
Morning Briefing
07 January 2026
Brent: $60.70 (- $1.06)
WTI: $57.13 (- $1.19)
Naphtha CFR Japan: + $12
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: + $1
Propylene CFR China: + $1
*Data represent closing prices of the previous trading day
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Rebounding Chinese PE Market Lifts Expectations For Firmer February Outlook In Southeast Asia
The Chinese PE market extended its rebound into a second consecutive week, prompting Southeast Asian participants to reassess pricing expectations for February cargoes. Market talk has centred on the possibility of $20–30/ton increases from major regional and international suppliers, mirroring firmer sentiment in China. If realised, such adjustments would snap a six-month downtrend.
That said, buyers cautioned that any upward revisions are likely to be uneven across grades, reflecting persistent divergences in regional supply fundamentals.
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Festive Demand Lifts Buying Sentiment In Malaysian PP And PE Markets
Malaysia’s PP and PE markets reopened after the New Year holiday with a modest pickup in buying activity, as converters raised operating rates to meet Ramadan-related demand. A softer pricing stance from major domestic producers further smoothed trade flows and encouraged near-term purchases.
Even so, most buyers stuck to back-to-back procurement strategies, avoiding heavy stockbuilding amid concerns over a narrowing festive demand window. Market participants noted that demand typically softens in the post-Ramadan period, historically weighing on resin consumption.
Meanwhile, delivery delays for HDPE film persisted and were widely expected to linger. Some buyers turned to the import market to secure prompt cargoes, anticipating continued tightness for the grade in the weeks ahead.
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