Aggressive US PE offers intensify price competition in Southeast Asia

Southeast Asia’s import PE markets remained under notable pressure last week, as aggressively priced US-origin cargoes intensified competition among suppliers and reinforced bearish sentiment across the region. Although persistent supply constraints from the Middle East continued to lend structural support to the market, weak downstream demand and cautious purchasing behavior kept buyers largely sidelined.

Market players said the recent downturn was driven less by abundant prompt availability and more by deteriorating buying appetite, as converters across the region continued to struggle with poor margins after purchasing material at elevated levels during March and April. Many converters were reportedly unable to pass higher resin costs on to end-product markets amid sluggish orders, prompting cautious inventory management and reduced operating rates.

US offers emerge below Chinese levels for some grades

Fresh US-origin offers emerged at sharply lower levels last week, with some prices falling by up to $180/ton from the previous week and even undercutting Chinese-origin HDPE film offers at the low end. The aggressive pricing amplified concerns over further corrections, particularly in Vietnam, where buyers remained reluctant to commit to new purchases.

A Vietnamese trader said demand conditions remained weak and buyers were increasingly concerned about the risk of inventory losses amid the ongoing downturn. “Even though we are not holding large inventories, we still prefer to delay replenishment purchases as prices may fall further,” the trader said. The source also noted that competitively priced US cargoes were starting to emerge more visibly in the market, while some Chinese traders were re-exporting US material at very low levels.

The latest corrections pushed the low end of LDPE film prices below the $1600/ton CIF mark, while HDPE film slipped beneath the key $1300/ton threshold, intensifying pressure on rival origins. In the latest revisions, a low LDPE film offer at $1500/ton CIF was excluded from the assessed ranges to better reflect broader market conditions.

Supplier competition intensifies

Meanwhile, Chinese suppliers continued to expand their presence in Southeast Asia with competitive pricing, supported by comfortable feedstock positions and ongoing production growth. Some players said Chinese-origin material increasingly set the tone for regional pricing, forcing other suppliers to adjust their offers more aggressively to remain competitive.

Buying interest for Middle Eastern and Taiwanese cargoes remained muted despite ongoing supply limitations from the Middle East. Sources said persistent logistical disruptions and concerns over shipment delays continued to weigh on purchasing decisions, particularly as buyers preferred to avoid building inventory in a falling market.

With US, Chinese, and regional suppliers all competing more aggressively for market share, players said sentiment was likely to remain cautious in the near term, especially as seasonal demand weakness approaches and converters continue to prioritize inventory control over forward purchasing.