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Morning Briefing - 05 May. 2026Southeast Asia’s polyolefin market is undergoing a sharp recalibration, as Indonesia’s aggressive discounting collides with Malaysia’s return to monthly pricing, exposing a region that firmed too quickly in April and is now correcting. |
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CommoPlast
Morning Briefing
05 May 2026
Brent: $114.44 (+$6.27)
WTI: $106.42 (+ $4.48)
*Data represent closing prices of the previous trading day
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Indonesian major slashes PP and PE four times as Malaysia reverts to monthly pricing, signalling regional reset
Southeast Asia’s polyolefin market is undergoing a sharp recalibration, as Indonesia’s aggressive discounting collides with Malaysia’s return to monthly pricing, exposing a region that firmed too quickly in April and is now correcting. Indonesian producers have cut prices four times since 27 April, including twice in May, to defend share against cheaper imports and anticipated 0% duties, accelerating a shift toward import parity as Chinese cargoes anchor the market. In Malaysia, the return to structured monthly pricing signals stabilisation, but levels remain well above March, underscoring how quickly April’s spike detached from fundamentals.
Import cargoes have since eased supply pressure across both markets, resetting competitive dynamics and forcing domestic producers into defensive discounting. The key question now is how far prices can fall before margins become unsustainable. Near term, the market remains caught between import-driven downside pressure and a tightening cost base, leaving direction dependent on where a credible floor emerges.
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Indonesian major executed fourth price cut in a week amid import influx and duty-free anticipation
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India PVC finds early floor as upstream cost pressure proves unavoidable
India’s PVC market is showing early signs of stabilisation, with prices edging higher as ethylene-based PVC trails firm upstream costs amid lingering tightness in the energy complex. The latest producer price list increase was effectively inevitable given persistently elevated feedstock and energy costs, but converter resistance and seasonal monsoon softness may continue to cap any meaningful recovery.
At the same time, a sharp slowdown in inbound flows since March is easing the earlier supply overhang and helping rebalance sentiment. Short-term, the market appears broadly stable, though margin erosion is gradually shifting the bias upward as producers defend economic viability, even if the recovery remains uneven and constrained.
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