|
|
Morning Briefing - 08 May 2025Following a sluggish start, trading sentiment in the Chinese PP and PE market showed slight improvement, underpinned by a rebound in futures contracts and encouraging macroeconomic signals. The uptick in transactions, however, was accompanied by additional price discounts. |
|
CommoPlast
Morning Briefing
08 May 2025
Brent: $61.12 (â $1.03)
WTI: $58.07 (â $1.02)
Naphtha CFR Japan: á $7
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: â $5
*Data represent closing prices of the previous trading day
____________________________________________________________________
Bullish macroeconomic signals bolstered trading sentiment in China
Following a sluggish start, trading sentiment in the Chinese PP and PE market showed slight improvement, underpinned by a rebound in futures contracts and encouraging macroeconomic signals. The uptick in transactions, however, was accompanied by additional price discounts.
On Wednesday, Chinese authorities unveiled a series of stimulus measures—including interest rate cuts and a 0.5 percentage point reduction in the reserve requirement ratio (RRR)—as part of broader efforts to mitigate the economic fallout from ongoing trade tensions with the United States.
“The market has started to move, but buyers remain extremely price-sensitive. Should the current macroeconomic optimism lose steam, demand could retreat just as quickly,” a market participant observed.
___________________________________________________________________ _
Malaysian LDPE Price Cuts Fail to Ignite Local Demand
A local PE producer in Malaysia has lowered its domestic LDPE film offers for May delivery by MYR 100–200/ton in an attempt to stimulate buying activity. However, the price reduction has done little to revive demand, with market sentiment remaining subdued due to sluggish downstream consumption. Spot allocations for other PE grades have been withheld amid ongoing production challenges.
Market sources report that, unlike HDPE and LLDPE film, LDPE film supply remains relatively stable. Nonetheless, converters are showing little urgency to restock, with several indicating plans to scale back purchases for May. Many expect further price concessions, pointing to the recent strengthening of the Ringgit and a broader climate of macroeconomic uncertainty as key factors dampening sentiment.
____________________________________________________________________
Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast
About CommoPlast Asia Sdn Bhd
Your empowering market insight site
