Morning Briefing - 08 June 2026

Farid Muzaffar CommoPlast Asia Sdn Bhd

A major South Korean producer slashed homo-PP yarn offers to Vietnam to sub-$1,200 levels at the end of last week, wiping out most of the war-premium gains built since the Iran conflict escalated.

CommoPlast

Morning Briefing

08 June 2026

Brent: $93.09 (- $1.94)

WTI: $90.54 (- $2.50)

Naphtha CFR Japan: â

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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Supply overhang crushes South Korean PP war premium in Southeast Asia

A major South Korean producer slashed homo-PP yarn offers to Vietnam to sub-$1,200 levels at the end of last week, wiping out most of the war-premium gains built since the Iran conflict escalated. The move split the market: some buyers moved volumes at current levels while others held out, betting the floor hasn't formed yet.

Their caution has backing as NSRP is running its 370,000-ton/year PP unit at full tilt, having placed tenders for over 55,000 tons in under two weeks, and the resulting domestic supply pressure is bleeding into USD-denominated export pricing. Chinese and other overseas sellers are holding their levels for now, but Korean deals are already resetting the market floor. With supply showing no sign of easing, further softening looks more likely than not.

Read full story:

South Korean homo-PP breaches $1,200/ton threshold in Vietnam, buyers re-enter cautiously

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Indonesia PP downturn deepens as buyers shun falling prices

Indonesia’s homo-PP market remains trapped in a demand-led downturn, with falling prices doing little to stimulate buying interest. Converters continue to delay purchases amid expectations of further declines, encouraged by ample regional supply, aggressive spot sales from Vietnam and the arrival of large volumes secured during the April Chinaplas buying cycle. Domestic producers have responded with repeated price cuts to defend market share despite mounting margin pressure.

The weakness is notable given increasingly supportive upstream conditions. Higher Asian LPG prices, extensive Chinese maintenance outages and a closed Chinese export window have tightened regional supply, but these factors are being overshadowed by excess inventories and sluggish end-product demand. With buyers focused on inventory digestion and regulatory uncertainty clouding procurement decisions, the market bias remains tilted to the downside in the near term.

Read full story:

Indonesia's homo-PP market navigates supply adjustments and downstream resistance

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