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Morning Briefing - 26 Feb. 2026Vietnam’s homo-PP market has reopened firmer, but it is apparent that the rebound is cost-led rather than demand-driven. |
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CommoPlast
Morning Briefing
26 February 2026
Brent: $70.85 (+ 0.08)
WTI: $65.42 (- $0.21)
Naphtha CFR Japan: (+ $3)
Ethylene CFR NEA: (Stable)
Ethylene CFR SEA: (Stable)
Propylene FOB Korea: (Stable)
Propylene CFR China: (Stable)
*Data represent closing prices of the previous trading day
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Vietnam PP reopens firmer, but cost-led rally tests demand resolve
Vietnam’s homo-PP market has reopened firmer, but it is apparent that the rebound is cost-led rather than demand-driven. Sellers lifted offers in step with resilient crude, firm propylene and stronger Chinese benchmarks, amplified by gains of futures on the Dalian Commodity Exchange, signalling a coordinated defence of margins across the chain.
Converters remain cautious, well covered from pre-holiday purchases and constrained by weak pass-through. The near-term bias stays upward on external support, yet without a clear revival in downstream orders, gains could remain measured rather than momentum-driven.
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South Korea triggers petrochemical reset with Daesan merger and capacity cuts
The South Korean government has approved the merger of HD Hyundai Oilbank and Lotte Chemical’s Daesan operations into a 50-50 joint venture, marking its first formal petrochemical restructuring. The plan includes a three-year shutdown of 1.1 million tons/year at the Daesan naphtha cracker, alongside financial support and fresh capital injections.
The capacity withdrawal signals a shift towards structural consolidation amid persistent oversupply, with potential implications for regional feedstock balances and further rationalisation across Northeast Asia.
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