Import PE retains strength over PP in SE Asia’s polyolefin markets

In Southeast Asia’s polyolefin markets, import PE has maintained a stronger position than PP since the post-Lunar New Year uptrend. Supply constraints and seasonal factors have lent PE prices firm support, while ample Chinese-origin PP cargoes have kept PP under pressure. However, both markets continue to face demand headwinds amid economic uncertainty and cautious buying.

LDPE, LLDPE lead PE gains

LDPE and LLDPE film exhibited the most notable strength, maintaining an upward trajectory in pricing over the past one and a half months. This was primarily driven by supply limitations due to planned turnarounds in the Middle East and regional production shutdowns amid profitability issues. These grades were also in higher demand than HDPE film and homo-PP, regardless of buyers’ hesitance toward large-volume offtakes on expectations of price corrections.

ChemOrbis Price Index suggests that since the post-holiday uptrend, LDPE and LLDPE film prices have risen by over 3% and 5%, respectively. The price gap between LLDPE and HDPE film widened to $65/ton, while LLDPE carried a $70/ton premium over homo-PP raffia and injection grades, the largest gap seen since mid-2022.



HDPE regains premium over PP

HDPE film, which had lost its traditional premium over homo-PP raffia and injection from December 2024 to early February 2025, has rebounded with a price increase of over 4% since the pre-holiday week. In contrast, homo-PP raffia and injection prices saw only a 2% increase during the same period, reflecting PP’s relative weakness. HDPE has regained its premium over homo-PP for about a month.

Despite this recovery, HDPE’s price advantage remains fragile. With demand still sluggish, its $5/ton premium over PP grades appears vulnerable. Traders noted that while supply constraints persist, HDPE has not experienced the same strong price momentum as LDPE and LLDPE due to limited buying interest.

Chinese PP supply weighs on market

Southeast Asia’s PP market continues to face downward pressure from an influx of competitively priced Chinese-origin cargoes. Despite supply disruptions from Middle Eastern turnarounds and regional production cuts, Chinese exporters’ efforts to offload surplus inventory at home have kept prices in check.

As of the week ending March 14, Chinese-origin offers continued to form the low end of the overall import range for homo-PP raffia and inj., at $935-960/ton CIF, cash. Some shipments were dealt at $935-950/ton on CIF Vietnam, cash.

Demand woes linger for both polyolefins

Despite PE’s stronger position relative to PP, overall polyolefin demand remains weak. Buyers are limiting purchases to essential needs while awaiting potential price adjustments.

Seasonal support for LLDPE film provided some relief considering improved buying power from the agriculture sector. However, demand, in general, was deemed insufficient to drive further upward momentum. A trader once said, "LLDPE demand is a tad better compared to other polymers given the agricultural season, but it has yet to gain a solid shape.”

Regional players confirmed that while PE managed to hold stronger than PP, the general buying outlook remained lackluster. This highlighted a broader challenge faced by the polyolefin markets in Southeast Asia, with some participants anticipating additional corrections in the near term. Another trader remarked, “Prices are still too high, but demand isn’t picking up. We expect more downward pressure ahead.”