SEA’s import PE prices hold stable on improved sentiment, demand uptick

Import PE prices in Southeast Asia held mostly steady for the second consecutive week, as sentiment gradually improved amid a temporary easing in global trade tensions. Market participants pointed to the 90-day tariff truce between the US and China as a key driver behind firmer sentiment, which in turn encouraged slightly more active buying. At the same time, high freight rates and manageable supply helped maintain the market’s stable tone, despite demand still showing only modest recovery.

As of the week ending May 23, import prices for LDPE, LLDPE, and HDPE film remained largely unchanged on a weekly basis. However, sellers, particularly those from the Middle East, attempted to raise their offers, citing better market conditions, not to mention the ongoing supply constraints. These efforts led to higher origin-based offer ranges.

ME sellers raise prices, defying lower June offers from Saudi major

Suppliers of Middle Eastern cargoes adopted a firmer stance, with several of them raising their PE offers by $10-20/ton. Their pricing marked the first increases in HDPE and LLDPE film prices since late March, while LDPE film continued to move sideways. Players reported that cargoes changed hands at rollovers, despite the higher offers.



In contrast, a major Saudi producer previously issued lower June shipment offers to Vietnam, reducing prices by $10/ton from May to $1140/ton for LDPE film, $980-990/ton for LLDPE film, and to $960/ton for HDPE film, all on a CIF Vietnam, cash basis. The major producer’s price cuts were interpreted as an effort to stimulate demand amid a still-fragile consumption environment.

Modest demand improvement lends support

Market sentiment has turned more positive, with signs of marginally improved demand in parts of the region. Some buyers resumed restocking in small quantities, encouraged by greater price stability and fears of potential price increases in the interim.

Several traders based in Singapore shared, “Following the tariff truce between the US and China, regional demand has seen a slight improvement, and market sentiment has become more upbeat. Buyers have started to return, purchasing limited volumes to replenish their inventories." Meanwhile, a Vietnamese trader said, “Demand showed a mild uptick this week, possibly because players are concerned about further price increases and begin replenishing stocks again.”

Still, overall offtake volume remained limited, as most buyers continued to prioritize essential purchases only. End-user orders have yet to show substantial recovery, and downstream converters remain cautious amid persistent concerns over global economic outlooks. A regional converter said, “We are only replenishing based on immediate needs. There’s no rush to build inventory at this stage.”

Tighter supply further reinforces confidence

The market has also been supported by tightening supply, both regionally and from major export sources, amid maintenance turnarounds and extended shutdowns. Additionally, delayed deliveries also contributed to a lack of supply pressure on the regional markets, according to market sources.

A Middle Eastern producer cited ongoing supply constraints, limiting their ability to offer cargoes to the region. A source at the producer noted, “This week, we don’t have many allocations for LLDPE and HDPE because of supply constraints. Only some leftover stock is available for LDPE.”

Furthermore, narrowing price gaps between China and Southeast Asia—especially for LDPE and HDPE film—combined with a more favorable US-China trade outlook, may lead US-origin cargoes to be redirected to China in the coming weeks. As such, Southeast Asia may see reduced competition from US suppliers, which could tighten the regional supply balance further and support a stable-to-firm price outlook.