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Morning Briefing - 11 Sept. 2025A series of production disruptions in Vietnam, South Korea, and Malaysia are expected to tighten supply toward year-end, potentially alleviating some of the downward pressure on prices. |
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CommoPlast
Morning Briefing
11 September 2025
Brent: $67.49 (á $1.10)
WTI: $63.67 (á $1.04)
Naphtha CFR Japan: á $6
Ethylene CFR NEA: Stable
Ethylene CFR SEA: Stable
Propylene FOB Korea: Stable
Propylene CFR China: á $5
*Data represent closing prices of the previous trading day
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Vietnamese homo-PP Market Slipped Despite FX Support
The Vietnamese homo-PP market continued to face heavy pressure this week as weak demand and ample supply overshadowed the support from a depreciating Dong against the US dollar. Despite the ongoing currency advantage, persistent softness in downstream consumption has driven local prices sharply lower.
Although sentiment is firmly bearish, Vietnamese participants pointed to limited scope for further sharp declines. Elevated upstream naphtha and propylene costs have already eroded producers’ margins, prompting some to advance turnaround schedules to ease financial pressure.
A series of production disruptions in Vietnam, South Korea, and Malaysia are expected to tighten supply toward year-end, potentially alleviating some of the downward pressure on prices.
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Chinese PVC Market Slumped to Multi-Month Lows
The Chinese PVC market has extended its downtrend into a fifth consecutive week, pushing spot offers under EXW China terms to their weakest levels since early June 2025. Waning demand at home and abroad has triggered a rapid build-up in inventories, weighing heavily on sentiment despite still-elevated upstream coking coal costs.
Expectations are building that Chinese suppliers will attempt to redirect volumes to Southeast Asia following India’s final rulings on anti-dumping duties, a shift that could sustain downward pressure unless producers reduce operating rates to curb inventory growth.
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