Morning Briefing - 04 Feb. 2026
CommoPlast
Morning Briefing
04 February 2026
Brent: $67.33 (+ $1.03)
WTI: $63.21 (+ $1.07)
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 homo-PP market extended gains, trade discussions plunged
The Southeast Asian homo-PP market remained on a firm footing despite recent softness in China, with regional producers rolling out fresh price lists showing week-on-week increases of $10–15/ton. Suppliers attributed the hikes to easing inventory pressure, while market participants noted that Chinese producers are unlikely to offer meaningful export concessions in the near term after drawing down on-hand stocks. Persistently rising upstream propylene costs further reinforced the bullish tone.
However, the price-led rally was met with a sharp pullback in buying interest. Trade discussions thinned markedly, with only a limited number of deals reported as most buyers retreated to the sidelines. Converters opted to run down existing inventories while reassessing market direction for March. Cost pass-through constraints remained acute, particularly among woven bag producers, as elevated resin prices continued to outpace finished goods pricing, capping their appetite for the latest increases.
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Chinese PVC market holds firm despite futures turbulence.
China’s PVC market bucked broader petrochemical volatility at the start of February, maintaining a firm tone despite sharp swings across futures and physical markets. Sentiment elsewhere deteriorated rapidly following a steep sell-off in crude oil and base metal futures, eroding buyer confidence. PVC, however, emerged as a relative outperformer, supported by resilient overseas demand and evolving regulatory dynamics.
CommoPlast data showed that export offers continued to edge higher, with ethylene-based PVC prices rising by $5/ton week on week, while carbide-based grades posted steeper gains of $10–20/ton. Market participants attributed the strength largely to steady export enquiries, which helped offset domestic caution.
Beyond the recent removal of export tax rebates, regulatory signals also lent a supportive undertone. Authorities have stepped up efforts to push carbide-based PVC producers towards mercury-free production processes. Market sources warned that strict enforcement of the policy could trigger temporary supply disruptions, adding another layer of support to near-term pricing.
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