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Morning Briefing - 08 May. 2026Indonesia’s proposed removal of import duties on PE and PP has compounded a fresh layer of volatility to an already fragile market, rattling buyers and sellers not only domestically but across Southeast Asia. |
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CommoPlast
Morning Briefing
08 May 2026
Brent: $100.06 (- $1.21)
WTI: $94.81 (- $0.27)
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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Indonesian PE market is pivoting from scarcity fears to policy risk
Indonesia’s PE market is undergoing a sharp correction as the extreme supply panic that drove prices to historic highs during the early stages of the US-Israel conflict with Iran begins to fade. Chinese cargo inflows, improving regional feedstock availability, and easing fears over a prolonged Strait of Hormuz disruption have rapidly deflated the crisis premium that dominated trade flows through March and April, shifting the market decisively from scarcity-driven buying to aggressive price reassessment.
Indonesia’s proposed removal of import duties on PE and PP has compounded a fresh layer of volatility to an already fragile market, rattling buyers and sellers not only domestically but across Southeast Asia. While prices remain well above the start of the year, sentiment has turned increasingly defensive as participants reassess how much of the earlier rally was driven by genuine scarcity versus panic-driven positioning. The market now appears to be transitioning into a more policy- and c
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Indonesian PE market tumbles into correction as panic premium unwinds, policy fears deepen sell-off
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Contained holiday inventory build could limit downside in domestic Chinese PP, PE markets
China’s polyolefin market is entering a critical post-holiday test as combined PP and PE inventories at CNPC and Sinopec rise at a far slower pace than typically seen after the Labour Day break. The relatively contained stock build has eased pressure on sellers to clear material aggressively, allowing producers and traders to maintain firmer pricing compared with previous years when inventories ballooned more rapidly.
With inventory pressure remaining relatively contained, Dalian Commodity Exchange futures are dictating spot market direction, while discounts stay limited and largely tactical to encourage transactions rather than accelerate destocking. Attention is now turning to whether demand can absorb incoming domestic inventory fast enough to prevent a sharper stock build in the coming days, a dynamic that could determine whether sellers retain pricing leverage into the near term.
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