Mid-Eastern PP raffia hits $850 CIF mark in China; LDPE film breaks below $1000

After the Dragon Boat Festival break, China’s import polyolefin markets remain under pressure as weak demand and ample supplies continue to weigh heavily on sentiment. In the PE sector, prices for key film grades are dropping to multi-month or even multi-year lows at lower ends, despite relatively stable upper-end offers. The PP market mirrors this trend, with oversupply and weak demand capping any potential recovery in pricing.

Traders report stagnant trading activity and a cautious buying environment as uncertainty clouds the short-term outlook. Additionally, upstream cost indicators offer little support to polyolefin prices as Brent crude and monomer markets stay depressed.

PE: Low end LLDPE, LDPE prices sink to multi-year lows

Traders in China reported a further slide in low-end prices for Middle East-origin LDPE and LLDPE film grades, with reductions of $20/ton for both, pushing LDPE prices below $1000/ton—a level not seen since December 2023. LLDPE prices at the low end of the overall import range, meanwhile, touched a five-year low, underscoring the extent of demand weakness.

A trader highlighted that "most companies currently lack continuous new orders," pointing to ongoing weakness in end-user procurement. While downstream operating rates are expected to decline slightly, the supply side may feel less impact from maintenance outages moving forward. As such, markets appear trapped in a holding pattern, with minimal supply-demand improvement and prices expected to stay weak and range-bound in the near term.

PP: Oversupply weighs on sentiment

Import PP markets also remain under pressure despite limited weekly price changes. A trader noted a $10/ton drop in Mid-Eastern homo-PP raffia prices, pulling the low end or the overall price range to $850/ton CIF, the lowest level since December 2023.

Market players continue to de-stock both upstream and downstream, with producers running plants at reduced rates to avoid oversupply. “The 90-day tariff relief window offered some support for short-term sales, but most buyers remain cautious now,” commented another Chinese trader. With new capacities still entering the market and no signs of major plant shutdowns, the oversupply is unlikely to ease quickly. Coupled with a sluggish macroeconomic environment, the weak pricing trend looks set to persist.

Cost snapshot: Crude and monomer trends offer little relief

On the upstream front, spot propylene prices fell by another $10/ton to $760/ton CFR China, hovering near a two-year low. Spot ethylene prices with the same terms remained unchanged at their lowest level since July 2023. Brent crude futures fluctuated below the $65/ton threshold with an insignificant weekly change, offering minimal cost support to monomer markets. As feedstock values stagnate or decline, polyolefin producers continue to face an uphill battle in stabilizing downstream prices.