Morning Briefing - 07 September 2026

MORNING BRIEFING

CommoPlast                 Monday, 07 September 2026

                                                                                                                             commoplast.com

MARKET MOVEMENT

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

TODAY’S DEVELOPMENTS

PRICE LIST · INDONESIA

Producer opens week with sharp hikes as Krakatau eruption could further cloud supply outlook

Indonesian polyolefin markets opened sharply higher this week as a domestic major lifted prices by over IDR 500,000/ton for PE and over IDR 1,000,000/ton for PP in the first trading week of the month. The scale of the increase caught the market off guard, with demand still lagging the pace of the price move.

The hikes come as Mount Anak Krakatau's eruption in the Sunda Strait has triggered ashfall and disruption across parts of West Java and Banten, forcing temporary airport closures and school shifts to remote learning in Jakarta. Cilegon, home to many of the country's domestic producers, sits close to the affected zone, raising the risk of operational hurdles that could weigh on supply in the near term.

With pricing already running ahead of demand and a live volcanic disruption in play, market could stay elevated, with the balance of risk tilted toward further upside should Cilegon-area operations see any disruption.

POLYVINYL CHLORIDE ·  CHINA

China's PVC rallies on property support measures, but physical demand lags paper gains

The market broke sharply higher in the week ending 4 September, snapping a month of subdued trading after Beijing's coordinated property rescue measures sent futures to limit-up and pulled spot prices along with it. Warehouse inventories fell to their lowest since January, but the drawdown looks more engineered than demand-driven, as converters sticking to hand-to-mouth buying.

Export offers moved up similarly, but soaring freight rates and port congestion have priced Chinese cargoes out of Southeast Asia, while India's trade remedy measures continue to squeeze the export channel further. A wave of short-cycle plant turnarounds is also due back online in the near-term, threatening fresh supply just as the rally's underlying demand support stays thin.

Read more:

China PVC surged on futures limit and property reforms, but downstream resistance and freight snarls unmask synthetic rally

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