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Morning Briefing - 28 Apr. 2026Rising sanctions scrutiny threatens the discounted crude flows anchoring China’s polymer exports, while Malaysian producers signal stabilising regional supply by returning to monthly pricing cycles. |
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CommoPlast
Morning Briefing
28 April 2026
Brent: $108.23 (+ $2.90)
WTI: $96.37 (+ $1.97)
Naphtha CFR Japan: á
Ethylene CFR NEA: â
Ethylene CFR SEA: â
Propylene FOB Korea: â
Propylene CFR China: â
*Data represent closing prices of the previous trading day
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China’s ‘teapot' refineries face rising sanctions heat as crude access narrows
Sanctions are closing in on China’s independent refiners, sharpening the tension between feedstock access and geopolitical compliance. The US designation of Hengli Petrochemical over Iranian crude purchases, alongside EU and UK actions targeting teapot processors of Russian barrels, marks a clear escalation in enforcement risk. However, Hengli’s high utilisation and three-month inventory buffer limit immediate disruption.
The result is a tightening grip on discounted crude flows that have anchored China’s polymer export competitiveness. Rising scrutiny is set to constrain feedstock availability and inject friction into PP and PE supply chains, even as demand stays uneven. Beijing’s coal-to-chemicals push offers a structural hedge, but not near-term relief.
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Malaysian producer returns to monthly pricing as feedstock flows improve
A Malaysian producer is returning back to monthly price lists, abandoning the weekly cadence adopted during the US-Iran disruption, in a signal that supply visibility is stabilising. The shift comes as reports emerged of major domestic players securing fresh Middle Eastern feedstock, easing near-term procurement pressure and restoring confidence in run rates.
Combined with expectations of improving availability in Indonesia, the move points to a gradual loosening of regional balances. The return to longer pricing cycles suggests reduced volatility and a more predictable supply backdrop, which could lend modest support to market sentiment, though any upside is likely to be tempered by still-cautious downstream demand.
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