SE Asia’s import LDPE film prices hit over six-month low

Southeast Asia’s import LDPE film market faced renewed declines last week, pressured by subdued demand and cautious buying. According to ChemOrbis Price Index data, the weekly average for LDPE film prices hit the lowest level since mid-May. Despite these declines, LDPE continues to carry a significant premium of around $190-205/ton over HDPE and LLDPE film.

Saudi major’s Dec offers reflect bearish sentiment

New offers from a major Saudi Arabian producer for December shipments have put further pressure on the market. The producer lowered LDPE offers by $50/ton from November to $1200/ton CIF Vietnam, cash, alongside cuts for other PE grades, including HDPE and LLDPE.

Weak demand and year-end caution

A consistent theme across players is the lack of restocking activity among converters in the region. Converters remain hesitant to replenish inventories, preferring to conserve cash flow as the year-end approaches.

Uncertainty surrounding US trade policies following recent elections has further dampened buying interest, with fears that higher tariffs on Chinese goods could redirect Chinese cargoes to Asian markets, intensifying competition and putting additional pressure on prices.

A Singaporean producer remarked, “LDPE offers have edged lower this week, as downstream markets are hesitant to commit to fresh shipments, awaiting clarity on trade policies.”

“Converters are unwilling to stock up additional inventories, especially with weaker downstream orders compared to previous months,” another Singapore-based trader said. Similarly, an Indonesian converter highlighted that purchases were limited to basic needs, citing weaker demand for finished products and the traditional year-end slowdown.

A Vietnamese trader added, “There aren’t many prime-grade offers in the market right now. Demand remains weak, and sellers are reluctant to offer significant discounts. Many buyers are waiting until after the Chinese New Year to make fresh commitments.”

LDPE film’s premium over HDPE and LLDPE holds

Despite the recent losses, LDPE film prices continue to carry a hefty premium of $190-205/ton over HDPE and LLDPE film. However, some players believe this premium could shrink if demand for LDPE weakens further or if supply pressures ease in the coming months.

For the week ending on November 29, import PE prices for all origins were assessed at $1140-1230/ton for LDPE film, $960-1030/ton for LLDPE film, and $940-1020/ton for HDPE film, all on CIF SEA, cash basis. The LDPE range was down $20-30/ton from a week earlier, while HDPE and LLDPE were down by $10/ton.



Players: Bearish outlook persists

Regional players anticipate further downward pressure on LDPE film prices in the short term due to sufficient inventories among converters, coupled with limited year-end purchasing activity.

“A lack of demand recovery in downstream markets, with converters scaling back operations and focusing on basic procurement needs, keeps the market under pressure. We don’t expect a price recovery until at least the New Year,” a trader commented.