China’s local LDPE film prices slump; imports follow suit

In China, domestic LDPE film prices witnessed sharp decreases this week as demand weakened amid falling futures and crude oil prices, compounded by escalating trade tensions with the US. Import prices also declined, dragged lower by weakening local sentiment.

Traders reported that local LDPE film offers dropped significantly to around CNY9300-9775/ton ($1129-1187/ton without VAT) on an ex-warehouse, cash basis. The low end of the range fell by CNY250/ton ($34/ton), while the high end plunged by CNY675/ton ($92/ton) compared to last week. According to ChemOrbis Price Wizard, the midpoint of the current range is the lowest since May 2024.

Import LDPE film prices also declined by $10-20/ton from last week. Offers for all origins currently stand at $1060-1130/ton CIF China, cash, also marking a midpoint low not seen since May 2024.

Tariff tensions cloud outlook

The escalation of US tariffs on Chinese goods has added a fresh layer of pressure on China’s LDPE film market. The new policy has disrupted the export outlook for many downstream sectors, particularly packaging, where some manufacturers are already seeing a reduction in orders to the US. Although certain converters report that local orders remain relatively stable, the overall demand environment has become more fragile.

A Shanghai-based trader said that demand weakened sharply due to the new US tariff policy, as many Chinese products, particularly packaging materials, face reduced export potential. “Most players are staying on the sidelines. The tariff war is expected to continue at least until the second half of the year,” he commented, expecting continued weakness in the near term.

A converter in Dalian echoed the sentiment, noting that LDPE film prices fell more sharply than other PE grades due to plunging futures and weak buying interest. “There is oversupply, and although our local orders are stable, orders from the US for packaging bags have decreased. Market sentiment remains weak,” he said. Some buyers are still seeking offers, he added, but are only purchasing to meet basic needs.

A Taiwanese PE producer confirmed that their LDPE film prices dropped sharply this week due to falling crude oil and raw material costs as well as the tariff impact. “The new tariffs are making the market even more uncertain, especially for export orders,” the source said. He noted a strategic shift towards Southeast Asia, where demand is relatively healthier. “For EVA, demand is still good, unlike the PE market,” he added.