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Morning Briefing - 21 Apr. 2026Southeast Asian PP and PE markets opened the week on a stable-to-softer trajectory, as renewed geopolitical tensions undercut earlier optimism over a potential reopening of the Strait of Hormuz. |
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CommoPlast
Morning Briefing
21 April 2026
Brent: $95.48 (+ $5.10)
WTI: $89.61 (+ $5.76)
Naphtha CFR Japan: â
Ethylene CFR NEA: â
Ethylene CFR SEA: â
Propylene FOB Korea: Stable
Propylene CFR China: Stable
*Data represent closing prices of the previous trading day
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Southeast Asian PP, PE markets track stable to softer trend amid geopolitical whipsaws
Southeast Asian PP and PE markets opened the week on a stable-to-softer trajectory, as renewed geopolitical tensions undercut earlier optimism over a potential reopening of the Strait of Hormuz. A breakdown in the latest US–Iran peace negotiations over the weekend has reintroduced volatility, prompting market participants to reassess risk exposure.
On the supply front, import activity remained subdued. China-origin homo-PP yarn offers were reported marginally lower by $5/ton week on week, but failed to elicit meaningful buying interest. In Vietnam, converters continued to draw down existing inventories rather than commit to fresh positions, while in Indonesia, a sharp depreciation in the rupiah further constrained appetite for USD-denominated cargoes.
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Chinese PVC producers scale back operating rates as margins deteriorate
Chinese PVC producers are moving to curtail output, with at least 18 units across both ethylene- and carbide-based routes scheduled for shutdowns or significant rate reductions between April and May. The coordinated pullback reflects intensifying margin pressure amid a sustained market downturn.
China-origin PVC has been at the forefront of the latest price correction cycle, weighed down by weak futures performance, elevated domestic inventories, and persistently soft downstream demand. Notably, ongoing constraints in upstream ethylene supply have failed to stabilise the market, leaving ethylene-based producers particularly exposed to margin compression.
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