Morning Briefing - 24 Mar. 2026
CommoPlast
Morning Briefing
24 March 2026
Brent: $99.94 (- $12.25)
WTI: $88.13 (- $10.10)
Naphtha CFR Japan: á
Ethylene CFR NEA: Stable
Ethylene CFR SEA: á
Propylene FOB Korea: á
Propylene CFR China: á
*Data represent closing prices of the previous trading day
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Oil slump stalled Asian polyolefins trade as sentiment turns cautious
International crude benchmarks tumbled on 23 March, shedding nearly 11% as geopolitical risk premiums unwound. The move followed US President Donald Trump’s decision to delay potential strikes on Iranian energy infrastructure, alongside tentative signs of diplomatic progress.
Brent plunged $12.25/barrel (10.9%) to $99.94/barrel while WTI slide $10.10/barrel (10.3%) to $88.13/barrel.
Although clarity on efforts to reopen the Strait of Hormuz remains limited, the sharp correction in oil prices has shifted market sentiment. Participants across Asia’s petrochemical markets increasingly view the latest developments as a signal that a ceasefire scenario is plausible.
Buying interest retreated swiftly in response. Market players stepped back to reassess near-term price direction, effectively stalling polyolefin trading activity across the region.
Sources noted that the abrupt reversal in crude is likely to pressure Chinese suppliers to adjust offers downward in the coming sessions, as feedstock-linked cost support weakens.
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Chinese suppliers stay firm as inventory overhang persists
Chinese PP and PE producers remain resolutely bullish despite mounting inventory pressure, underscoring a growing disconnect between upstream price gains and downstream uptake.
Despite sustained rallies in both futures and spot markets since early March, producers have struggled to meaningfully reduce domestic stockpiles. Data from CommoPlast indicates that combined inventories held by Sinopec and CNPC remained well above 900,000 tons as of 23 March, even as the month-end draws near.
Notably, this overhang has yet to dent seller confidence. Market participants told CommoPlast that most Chinese suppliers continue to hold a cautiously optimistic demand outlook, anticipating a rebound in offshore buying interest after the Eid al-Fitr holidays.
However, persistently volatile energy markets are emerging as a key downside risk, with potential to disrupt sentiment and delay any meaningful recovery in trading momentum.
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