Click the icon to add a specified price to your Dashboard list. This makes it easy to keep track on the prices that matter most to you.
This week, Low density polyethylene prices gained in the Asian region.
An industry source in Asia on condition of anonymity informed a Polymerupdate team member, “A firm reiteration by the United States to proceed with the implementation of import tariffs on goods from Canada and Mexico next week has shaken global market confidence while exerting a bearish pressure on international oil prices. Furthermore, a strengthened US dollar against other Asian currencies continued to weigh on market sentiments.”
The source added, “The price rise in LDPE was triggered by firmer import offers from overseas suppliers. Meanwhile, buying was steady as market participants await additional offers from overseas producers.”
In Far East Asia, LDPE film grade prices were assessed at the USD 1140-1180/mt CFR levels, a week on week increase of USD (+10/mt).
In China, Middle Eastern producers have offered their LDPE film grades in the range of USD 1140-1180/mt levels, for shipment in March 2025.
In China, the PE import market experienced tepid demand as buyers continued to delay purchases in anticipation of additional offers next week. The decelerated trade momentum points to cautious downstream buyer strategy, possibly resulting from erratic market conditions or price expectations. Although stable-to-firm domestic prices were seen to offer some support, they were deemed insufficient to generate substantial buying interest. The market is likely to remain in a holding pattern owing to the prevailing wait-and-watch approach among participants until distinct pricing trends appear.
A converter informed that market trends are steady to slightly erratic amid balanced demand-supply dynamics. Volatility is currently limited, as evidenced by the cautious attitude and slower downstream raw material consumption. In terms of currency trends, the price of the US dollar is still steady with minor swings, while the RMB has slightly declined but is still strong enough to sustain USD prices. These factors could lead to prices moving in the narrow range of USD 5-10 in the short term.
In Southeast Asia, LDPE film grade prices were assessed at the USD 1160-1200/mt CFR levels, a gain of USD (+10/+20/mt) from the previous week.
In Vietnam, a Middle Eastern producer has concluded deals for LDPE film grade at the 1600/mt levels, while a producer from Saudi Arabia has concluded deals for LDPE film grade at the USD 1200/mt levels.
In Southeast Asia, prices firmed amid tight supply resulting from unplanned production shutdowns. Buyers have been exercising caution by resisting higher price offers and steering clear of impulsive purchases.
In Vietnam, buyers are in a wait-and-watch mode in spite of a major Middle Eastern supplier announcing a hike in March offers due to reduced allocations. They are awaiting further updates from other suppliers in the next few days.
A trader stated that reduced sea freight costs and a favourable exchange rate provide Chinese suppliers with a competitive advantage in the Vietnamese market. However, the increasing number of Chinese companies looking to export is creating intense price competition, as they tend to undercut each other.
In India, LDPE prices were assessed at the USD 1165-1185/mt CFR levels, up USD (+5/mt) from last week.
In India, Middle Eastern producers have offered their LDPE film grades in the range of USD 1165-1185/mt levels, for shipment in March 2025.
In India, the absence of offers from Middle Eastern producers has led domestic market participants to adopt a wait-and-watch approach. The weakening of the rupee as compared to the US dollar, having the potential to raise import prices and impact consumer choices, further added to an uncertain outlook.
The Indian PE market is going through a challenging phase with overall sentiment adversely affected due to a combination of bearish factors comprising cautious buyers, low demand, and strict payment terms. Even the seasonal push has not been deemed sufficient to bolster the presently slack momentum. Given the current market uncertainty, it is understandable for suppliers to concentrate on offloading inventory rather than taking new risks. Demand may slightly increase after the festival of Holi, but since supply is still plentiful, the prospects of a substantial price recovery are slim, unless budgetary restraints tighten and cause the payment cycle to slow, necessitating price adjustments.
A trader stated that Chinese suppliers have a competitive edge in the Vietnamese market owing to reduced sea freight costs and a favourable exchange rate. However, price competition is getting intense in the region with a rise in the number of Chinese companies undercutting each other, as they look forward to expanding their presence in the export market.
In Pakistan, LDPE prices were assessed at the USD 1160-1200/mt CFR levels, an increase of USD (+10/mt) from the previous week.
In Pakistan, overseas suppliers have offered their LDPE film grades in the range of USD 1160-1200/mt levels for shipment in March 2025.
In Pakistan, buying sentiment was reported to be steady in the week amid a lack of change in demand sentiments and limited spot offers. With buyers opting to stay away from bulk stockpiling ahead of the holiday next month, restocking appetite had weakened. Buying activity had declined with inventories considered to be ample. Demand is likely to remain comparatively flatter in March than February with market players staying away for Ramadan. A trader stated that lower sea freight costs and a favourable exchange rate have given Chinese suppliers a unique competitive advantage in the Vietnamese market. However, price competition is intensifying in the region with an increasing number of Chinese companies entering the export trade trying to undercut one another.
In Sri Lanka, LDPE prices were assessed at the USD 1185-1215/mt CFR levels, a week on week increase of USD (+5/mt).
Buying activity was steady as most buyers are awaiting additional offers from other major producers. According to a trader, Chinese suppliers have a competitive edge in the Vietnamese market thanks to favorable exchange rates and a decline in sea freight costs. However, as they frequently undercut one another, the growing number of Chinese companies aiming to export is causing fierce price competition.
In Sri Lanka, Middle Eastern producers have offered their LDPE film grades in the range of USD 1185-1215/mt levels for shipment in March 2025.
In Bangladesh, LDPE prices were assessed at the USD 1140-1160/mt CFR levels, a gain of USD (+10/NC/mt) from last week.
Market sentiment was reported to be steady ahead of Ramadan. A trader stated that lower sea freight costs and a favourable exchange rate have given Chinese suppliers a competitive advantage in the Vietnamese market. However, as more Chinese businesses enter the export market and attempt to undercut one another, price competition is getting more intense in the area.
In Bangladesh, Middle Eastern producers have offered their LDPE film grades in the range of USD 1140-1160/mt levels for shipment in March 2025.
Feedstock ethylene prices on Tuesday were assessed at the USD 895-905/mt CFR North East Asia levels, a rise of USD (+10/mt) week on week. Meanwhile, CFR South East Asia ethylene prices were assessed stable at the USD 915-925/mt levels.
In plant news, Wanhua Chemical Group has shut down its Low density polyethylene (LDPE) unit on February 13, 2025 for maintenance. Further details on the duration of the shutdown could not be ascertained. Located in Yantai, China, the unit has a production capacity of 250,000 mt/year.
