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Morning Briefing - 05 Feb. 2026Buyers remained actively engaged in the domestic distribution market, driven by worsening delivery delays from key local producers and an urgent need to the bridge the supply gap |
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CommoPlast
Morning Briefing
05 February 2026
Brent: $69.46 (+ $2.13)
WTI: $65.14 (+ $1.93)
Naphtha CFR Japan: +$15
Ethylene CFR NEA: -$2
Ethylene CFR SEA: -$5
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Tight supply keeps Malaysian PE firm despite regional buying fatigue
As prices continued to edge higher on constrained availability and firm demand in China, many regional buyers grew increasingly cautious, wary of market prospects after the Lunar New Year. Malaysia stood apart. Buyers remained actively engaged in the domestic distribution market, driven by worsening delivery delays from key local producers and an urgent need to the bridge the supply gap amid peak festive-demand season.
Market sources reported transactions in the distribution market concluded above producers’ official price lists, underscoring buyers’ willingness to pay a premium for immediate supply. Looking ahead, tighter availability is expected to sustain upward pressure on local prices into March, even as the trading window shortens.
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Rebounded futures failed to halt discounts in the Chinese PE market
The most actively traded LLDPE futures contracts on the Dalian Commodity Exchange settled higher on Wednesday, 4 February 2026, snapping a two-session losing streak. However, the rebound provided little immediate support to the physical market, where spot offers were trimmed by a further CNY 50–100/ton.
Market sources noted that most small- to mid-sized converters have already stepped away ahead of the extended holiday, while larger buyers remained guarded on fresh procurement amid near-term demand uncertainty. With logistics services set to wind down in the coming week, sellers face a narrowing window to conclude spot transactions and secure timely delivery, reinforcing the downward pressure on prices.
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