Morning Briefing - 13 Jan. 2026
CommoPlast
Morning Briefing
13 January 2026
Brent: $63.87 (+ $0.53)
WTI: $59.50 (+ $0.38)
Naphtha CFR Japan: + $7
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: + $5
*Data represent closing prices of the previous trading day
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Chinese LDPE Film Leads Polyolefin Rebound on Supply Fears
The Chinese LDPE film market recorded the strongest gains in the latest polyolefin rebound, outperforming both PP and LLDPE film despite a slower start to the recovery. According to CommoPlast data, spot LDPE film offers on an EXW China basis have climbed by CNY 725/ton ($104/ton) from the late-December cyclical low, marking the sharpest upswing among mainstream polyolefin grades.
Market participants attributed the rally primarily to supply-side concerns rather than a demand-led shift. While downstream demand has improved broadly in line with other PE segments, heightened geopolitical tensions — including unrest in Iran and strained US–Iran relations — have amplified fears of potential disruptions from China’s largest LDPE supply source. Sources noted that these concerns are likely to underpin prices in the near term, even as additional volumes emerge from newly commissioned domestic plants.
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Overseas PP Suppliers Test Higher Offers in Vietnam on Firmer Regional Signals
Overseas suppliers have begun lifting import homo-PP offers to Vietnam by $10–20/ton at the start of the week, underpinned by a three-week rebound in the nearby Chinese market. Market discussions indicated that the firming bias could extend in the weeks ahead, supported by revived Chinese demand and strong upstream costs.
However, buyer response remained muted. Converters were largely well covered on inventory and showed limited urgency to secure fresh volumes, particularly amid expectations of softer end-user demand in the post-Lunar New Year period. Despite thin transactional activity, market participants noted that overseas sellers are unlikely to roll back the latest increases in the near term, signalling a determination to defend higher price levels.
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