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Morning Briefing - 1 July 2026Asian propylene has unwound most of the geopolitical premium built up during the Iran conflict, with CFR China values down for a ninth straight week, and participants see little sign the correction is nearing a floor. |
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MORNING BRIEFING
CommoPlast Wednesday, 1 July 2026
commoplast.com
MARKET MOVEMENTS
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Brent CRUDE · $/BBL |
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WTI CRUDE · $/BBL |
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72.92 |
69.50 |
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▼0.23 |
▼1.25 |
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▲ Naphtha CFR JAPAN |
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▼ Ethylene CFR NEA |
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▼ Ethylene CFR SEA |
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▲ Propylene FOB KOREA |
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▲ Propylene CFR CHINA |
Closing prices, previous trading day. Monomers show direction only.
TODAY’S DEVELOPMENTS
PROPYLENE · ASIA
Asian propylene market extends downside as supply swells and demand falters
Asian propylene has unwound most of the geopolitical premium built up during the Iran conflict, with CFR China values down for a ninth straight week, and participants see little sign the correction is nearing a floor. Rising South Korean cracker rates, firmer Chinese PDH utilisation and PrefChem's cracker restart in Malaysia have all added to spot availability just as downstream homo-PP margins continue to erode, curbing feedstock consumption.
Chinese buyers remain largely absent from the import market given ample and competitively priced domestic supply, while falling naphtha and LPG costs are stripping away further cost support.
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Weak demand, swelling supply unravel Asian propylene premium
POLYVINYL CHLORIDE · CHINA
Power-driven supply cuts hand Chinese PVC a temporary floor
Seasonal power restrictions across a slice of China's carbide-route PVC capacity are curbing output and lending modest support to export offers, even as broader cost and demand pressures build beneath the market. Falling upstream energy values and expanding regional monomer supply continue to weigh on the vinyls chain, while domestic inventories have edged higher amid persistently soft converter demand in southern China.
Offshore, buyers in a key export market have stepped back pending regulatory clarity on import duties, holding out for lower levels as seasonal demand softness compounds the uncertainty.
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