Import LLDPE film hits 8-month high in SE Asia

In Southeast Asia, the import LLDPE film market has been shaped by supply constraints and a moderate demand revival from the agricultural sector in the past couple of weeks. Yet, the overall demand remains insignificant, as buyers hesitate to engage in large purchases due to high prices and concerns over end-product sales, putting a cap on the ongoing uptrend.

Prices at highest level since July 2024

ChemOrbis Price Index suggests that import LLDPE film prices have been on an upward trajectory since the beginning of the year, initially driven by supply tightness. The weekly average of import prices has climbed to an eight-month high at the time of writing. Meanwhile, offers under the $1000/ton mark have evaporated, with the low end of the import range rising to $1010/ton CIF Southeast Asia, cash.


As a key development, a major Saudi Arabian producer announced their March PE offers to Vietnam. Due to reduced supply, LLDPE film offers from the producer rose by $20/ton from February to be reported at $1060/ton CIF Vietnam, cash basis. “LLDPE allocation from the producer dropped significantly by 75% this month,” said a trader.

Shutdowns continue to curb availability

Supply constraints have played a crucial role in supporting higher prices in the import LLDPE film market. The Middle East, one of the primary sources for LLDPE, has faced tight availability due to planned turnarounds in the first two quarters of the year. Additionally, ongoing shutdowns at regional producers have further restricted supply in Southeast Asia.

A converter based in Malaysia noted, “LLDPE offers are on a firm note due to tight availability. Petronas’ LLDPE plant in Johor remains under maintenance, with no clear timeline for resuming normal operations, adding to the shortage of supply in the region.”

Agricultural season offers some support

The agricultural season leads to higher buying enthusiasm for LLDPE film, as it is widely used for applications such as greenhouse covers and mulch films. A Vietnamese trader opined, "LLDPE demand is a tad better than demand for other polymers thanks to the agricultural season, but it has yet to gain strong momentum.”

Indeed, broader market sentiment remains cautious. Demand recovery after the Lunar New Year has been slow, with sporadic end-user orders and lingering concerns over economic fragility. Many buyers remain hesitant to make bulk purchases, even with the likelihood of further price increases.

Another trader opined, “We are holding back on additional imports due to high prices and weak demand. Converters are replenishing only as needed, given the low order intake for finished goods. Even if prices rise later, they don’t seem eager to build inventory in advance.”