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Morning Briefing - 01 October 2026Malaysia's October polyolefin offers have landed far above what buyers had budgeted, with PP and PE increases both outpacing market expectations by a wide margin. Weeks of rising propylene and ethylene costs, combined with a reported cut to a rival producer's October allocations, have given the major room to hold firm. |
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MORNING BRIEFING
CommoPlast Thursday, 01 October 2026
commoplast.com
MARKET MOVEMENT
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Brent CRUDE · $/BBL |
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WTI CRUDE · $/BBL |
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103.50 |
90.42 |
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▲0.91 |
▲1.04 |
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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. Monomer price directions will not be published during the Golden Week holiday.
TODAY’S DEVELOPMENTS
PRICE LIST · MALAYSIA
Malaysian producer pushes October hikes well above market expectations
Malaysia's October polyolefin offers have landed far above what buyers had budgeted, with PP and PE increases both outpacing market expectations by a wide margin. Weeks of rising propylene and ethylene costs, combined with a reported cut to a rival producer's October allocations, have given the major room to hold firm.
Buyers are responding with restraint rather than acceding while limiting purchases to immediate needs and eyeing duty-free cargoes that currently undercut domestic levels by a wide margin. That gap gives converters a credible alternative if they choose to wait out the increase.
Whether these increases hold from here depends on the overall market trajectory. Eroding import competitiveness would narrow the discount and make domestic offers easier to swallow, especially once allocation cuts bite, while a continued uptrend on the import side could see buyers redirect trading activity further toward overseas cargoes over the month, testing how much of this increase the market is willing to absorb.
Read full story:
Malaysian major lifts October PP and PE prices well beyond expectations, but buyers remain unnerved
POLYETHYLENE · ASIA
Saudi major lifts October PE offers to Asia, but long lead times draw more pushback than price
A major Saudi producer has raised October PE offers across Asia, with increases ranging from modest in Vietnam to sharper in Indonesia and Malaysia. Resistance has been driven less by price than by timing, particularly in Vietnam, where cargoes earmarked for January loading, a lead time buyers are reluctant to carry in a volatile market. Deals there settled $20/ton below list, and a steep premium on the producer's bonded Vietnam warehouse stock found no uptake.
In China, the producer's informal counterbid approach fared worse, with traders undercutting its reference levels by as much as $50-70/ton while offering faster delivery, effectively capping how far the new offers can go.
With several regional suppliers already discounting and the market pricing lead-time risk over supply risk for now, the setup could flip quickly if Hormuz conditions worsen, leaving buyers who kept volumes thin short of cover just as replacement material gets scarcer.
Read full story:
Saudi major hikes October PE offers to Asia as supply restriction persists
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