Morning Briefing - 05 June 2026

CommoPlast

Morning Briefing

05 June 2026

Brent: $95.03 (- $2.78)

WTI: $93.04 (- $2.98)

Naphtha CFR Japan: â

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: â

Propylene CFR China: â

*Data represent closing prices of the previous trading day

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Vietnam PE stalls as Chinese arbitrage could cap market recovery

Saudi’s PE sellers are running out of runway in Vietnam, having cut offers twice in 10 days with diminishing returns. LLDPE film and LDPE lamination have both fallen sharply from initial levels, yet buyers refuse to engage. The problem lies in Chinese-origin cargoes clearing well below what Middle Eastern producers are asking in Southeast Asia, a spread wide enough to invite arbitrage and effectively cap any regional recovery.

What gives the situation its teeth is the position pain spreading through the local trading community. Cargoes bought at elevated levels, many priced with Iran conflict risk premiums now baked in, are arriving just as demand evaporates and converters dig in on the sidelines.

Read full story:

Comfortable supply, weak demand force Saudi major to trim LLDPE film offers to Vietnam

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Indonesia’s PVC takes its sharpest cut in months on the back of a confluence of factors

Indonesia's PVC market is repricing sharply, and the domestic producer's latest offer cut is less a strategic move than a forced concession to a supply picture that has fundamentally shifted. The reduction, among the sharpest seen in recent months, brings local levels into closer alignment with competitive Chinese cargoes that have been undercutting the market since the first quarter. The trigger was the Strait of Hormuz blockade, which reshuffled supply expectations violently enough to drive a front-loaded surge in Chinese import volumes that has since hardened into an inventory overhang the market is still absorbing. Easing feedstock costs made the cut commercially viable, but the move is defensive at its core.

Read full story:

Indonesia's PVC market absorbs sharpest domestic price cut in months as inventory overhang bites

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