LDPE film continues its uptrend in SE Asia, HD and LL take a breather
by Elif Sevde Yalçın - eyalcin@chemorbis.com
Southeast Asia’s import LDPE film prices have climbed further this week on tighter supplies and slightly elevated demand. Maintenance turnarounds at the Middle Eastern producers and escalating production costs have continued to support the overall PE sentiment across the region, although HDPE and LLDPE film have paused their increases in the current week.
LDPE nears one-year high, its premium over HD rises further
Import LDPE film prices are currently quoted stable to $30/ton higher compared to last week at $1060-1120/ton on CIF SEA, cash basis. Data from ChemOrbis Price Index reveal that the weekly average of prices has reached the highest level since mid-March 2023.
The overall price ranges for HDPE and LLDPE film have so far stayed flat from last week at $1010-1080/ton and $980-1080/ton, respectively, both on CIF SEA, cash basis. Prices of both grades hover around four-month highs, as per ChemOrbis data.
In the meantime, the premium LDPE film carries over HDPE film has further increased to around $45/ton due to the sharper gains recorded in the prices of the former. Since the uptrend kicked off in mid-December, LDPE has seen a cumulative gain of 12%, while HDPE has risen a total of 6%.
Limited buying enthusiasm despite upward trend
The recent hikes in the region have been attributed to reduced supplies from the Middle East , as well as higher crude and related feedstock costs. Still, the market remains quiet with limited import offers and limited demand.
“LDPE film prices have witnessed further gains, whereas HDPE and LLDPE have stabilized this week. Regional supply is likely to continue to face constraints owing to maintenance turnarounds in the Middle East plants. Adding to the challenges, production costs are on a steady rise, influenced by elevated energy, feedstock, and ocean freight prices. However, converters have been buying only limited volumes to hedge against further hikes after the Chinese New Year. We expect PE prices to be traded at the current ranges, or slightly higher in the near term,” commented a Singapore-based trader.
LDPE nears one-year high, its premium over HD rises further
Import LDPE film prices are currently quoted stable to $30/ton higher compared to last week at $1060-1120/ton on CIF SEA, cash basis. Data from ChemOrbis Price Index reveal that the weekly average of prices has reached the highest level since mid-March 2023.
The overall price ranges for HDPE and LLDPE film have so far stayed flat from last week at $1010-1080/ton and $980-1080/ton, respectively, both on CIF SEA, cash basis. Prices of both grades hover around four-month highs, as per ChemOrbis data.
In the meantime, the premium LDPE film carries over HDPE film has further increased to around $45/ton due to the sharper gains recorded in the prices of the former. Since the uptrend kicked off in mid-December, LDPE has seen a cumulative gain of 12%, while HDPE has risen a total of 6%.
Limited buying enthusiasm despite upward trend
The recent hikes in the region have been attributed to reduced supplies from the Middle East , as well as higher crude and related feedstock costs. Still, the market remains quiet with limited import offers and limited demand.
“LDPE film prices have witnessed further gains, whereas HDPE and LLDPE have stabilized this week. Regional supply is likely to continue to face constraints owing to maintenance turnarounds in the Middle East plants. Adding to the challenges, production costs are on a steady rise, influenced by elevated energy, feedstock, and ocean freight prices. However, converters have been buying only limited volumes to hedge against further hikes after the Chinese New Year. We expect PE prices to be traded at the current ranges, or slightly higher in the near term,” commented a Singapore-based trader.
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