Morning Briefing - 17 June 2026

MORNING BRIEFING

CommoPlast                     Tuesday, 17 June 2026

                                                                                                                             commoplast.com

MARKET MOVEMENTS

Closing prices, previous trading day. Monomers show direction only.

TODAY’S DEVELOPMENTS

POLYPROPYLENE · CHINA

China’s PP premium over LLDPE under threat as supply returns

The unusual premium enjoyed by spot homo-PP over LLDPE film in the domestic Chinese market is rapidly narrowing as an improving supply outlook and easing geopolitical risks combine to dampen sentiment.

Data from CommoPlast showed that homo-PP yarn on an EXW China basis is currently trading at around CNY 1,225/ton ($181/ton) above LLDPE film. The wide spread has become a key market focus, with participants increasingly expecting the premium to shrink as a combination of bearish factors exerts mounting pressure on PP prices.

For overseas markets, the implications could be significant. A weakening domestic market may prompt Chinese PP producers to lower export offers more aggressively, enabling them to regain lost competitiveness and intensify competition across key import destinations.

POLYETHYLENE · VIETNAM

South Korean suppliers spearhead price decline in Vietnam’s PE market

In a notable shift, several major South Korean producers have re-entered the Vietnamese PE market in recent weeks, signalling a gradual recovery in regional supply following disruptions linked to the recent Iran conflict.

Fresh offers for HDPE, LLDPE and LDPE film have emerged at the lower end of the prevailing price range, with some parcels priced below competing China-origin cargoes. The aggressive pricing has accelerated the downward momentum in the market and heightened competitive pressure among suppliers.

Market sources attributed the strategy to expectations of the Strait of Hormuz reopening and persistently weak demand across key overseas markets. Facing limited outlets and improving supply availability, South Korean producers have moved proactively to rebuild market share in Vietnam, using competitive pricing to re-establish their foothold in one of the region’s key import markets.