Linear low density polyethylene (LLDPE) prices trend lower in parts of Asia

This week, LLDPE prices dropped in some parts of Asia, while remaining stable in the Far East Asian region and India.

An industry source in Asia, on condition of anonymity, informed a Polymerupdate team member, "International oil prices have experienced a decline, largely due to the absence of any significant escalation in global geopolitical tensions, which has eased concerns over potential supply disruptions. Moreover, a series of disappointing economic indicators, signalling weaker global growth, have further dampened demand expectations, contributing to the downward pressure on prices.”

The source added, “ Meanwhile, shipping rates have surged as exporters take advantage of a break in US-China trade tensions. The World Container Index saw a significant increase last week, as per data from maritime consultancy Drewry, with shipping rates rising sharply over the past month due to high demand on transpacific routes. The Freightos Index also saw a notable jump, with China-US West Coast rates nearly doubling. Analysts expect the surge to peak soon, with rates likely to decline later in the year as capacity returns and regulations change. The outlook remains uncertain, depending on legal developments around tariffs and possible US restrictions on Chinese ships."

In Far East Asia, LLDPE prices were assessed at USD 830-860/mt CFR levels, rolled over week on week.

In China, a Middle Eastern producer has offered its LLDPE film grade at the USD 830/mt levels, for shipment in end June/early July 2025 shipment . A producer from Saudi Arabia has offered its LLDPE film grade at the USD 860/mt levels, for shipment in end June/early July 2025 shipment .

In China, although PE supplies from domestic production and imports are being deemed sufficient and production is rebounding, the market continues to be under strain from weak and cautious downstream demand. Purchasers are solely addressing basic requirements, limiting restocking efforts and hindering a significant change in market conditions. Even with a rise in supply, this cautious buying stance is keeping the supply-demand equilibrium largely unaffected. Consequently, U.S. dollar-denominated polyethylene prices continue to experience downward pressure, with the market continuing to experience volatility. The absence of progress in bidding activity and the ongoing prediction of decreasing import volumes further strengthens the belief that the polyethylene market will stay weak in the short term

In Southeast Asia, LLDPE prices were assessed at USD 900-940/mt CFR levels, a fall of USD (-10/mt) from the previous week.

In Vietnam, a European producer has offered its LLDPE film grades in the range of USD 950/mt levels, for shipment in end June/early July 2025 shipment . A Middle Eastern producer has offered its LLDPE film grade at the USD 940-950/mt CFR levels. However, bidding was heard below USD 900/mt levels although no official confirmation was received.

In Malaysia, a producer from US has offered its LLDPE film grade at the USD 930/mt CFR levels, for shipment in end June/early July 2025 shipment , with deals reportedly concluded at the USD 900/mt CFR levels. A Middle Eastern producer has concluded deals at the USD 930/mt CFR levels in Malaysia.

In Philippines, another producer from the Middle East has offered its LLDPE film grade at the USD 930/mt CFR levels, for shipment in end June/early July 2025 shipment. In Indonesia, an Asian producer has offered its LLDPE film grade at the USD 940/mt CFR levels, for shipment in end June/early July 2025 shipment .

In Southeast Asia, LLDPE prices remained steady to soft, as producers commenced fresh offer announcements for July deliveries. A few producers finalized spot contracts at marginally reduced price points relative to the prior week. Even with stable prices, downstream PE demand continued to be weak and mostly unchanged throughout the region. Market participants mentioned persistent uncertainty related to U.S. export orders during the third quarter, mainly because of worries about heightened import tariffs.

An increase in supply is expected in the weeks and months ahead as multiple PE plants in Malaysia and Vietnam are projected to resume operations. This has instilled a sense of caution among purchasers, who are reluctant to make commitments given the anticipated increase in supply. Trade activity was further hindered by significant holidays throughout the Middle East and certain regions of Southeast Asia, which slowed market momentum even more. In Vietnam, trading for Linear low density polyethylene (LLDPE) stayed within the assessed price range, while bids for High density polyethylene (HDPE) film experienced minimal interest. Purchasers indicated that they were holding sufficient stocks of U.S. and Middle Eastern shipments, reducing their interest in further purchases.



In India, LLDPE prices were assessed stable at the USD 900-930/mt CFR levels.

In India, Middle Eastern producers have offered their LLDPE film grades in the range of USD 900-930/mt levels, for shipment in end June/early July 2025 shipment .

In India, the LLDPE market stayed mostly stable in the second week of June, with consistent demand and sufficient supply. The recent resumption of operations by a leading Indian producer at its petrochemical units, after a month of maintenance, has enhanced market supply.

Purchasing behaviour primarily focused on necessity, as buyers chose to maintain minimal inventory levels. Market sentiment was varied about a potential price rebound in June following declines in May, with some participants anticipating that stability would continue during the monsoon season.

Domestic producers have announced multiple incentive schemes to boost buying activity. Meanwhile, the seasonal drop in demand for flexible packaging, especially within the food and beverage industry, is expected to impact market sentiment in the short term.

In Pakistan, LLDPE prices were assessed at the USD 930-950/mt CFR levels, a week on week decrease of USD (-10/mt).

In Pakistan, Middle Eastern producers have offered their LLDPE film grade in the range of USD 930-950/mt levels, for shipment in end June/early July 2025 shipment .

As Pakistani market participants prepare to recommence trading activity after Eid, focus is turning to the forthcoming financial budget for 2025–2026. Expected austerity measures could impact market sentiment, creating uncertainty and possibly reducing future demand. Traders are expected to move with caution until the fiscal policies and their effects become more evident.

In Sri Lanka, LLDPE prices were assessed at the USD 970-990/mt levels, lower by USD (-10/mt) week on week.

In Sri Lanka, a Saudi Arabian producers has offered its LLDPE film grade at the USD 970/mt levels for shipment in end June/early July 2025 shipment . Another overseas producer has offered its LLDPE film grade at the USD 990/mt CFR levels, for shipment in end June/early July 2025 shipment .

In Sri Lanka, buying activity was reported to be steady, with regional producers making fresh offer announcements for July shipment.

In Bangladesh, LLDPE prices were assessed at the USD 950-980/mt CFR levels, a fall of USD (-10/mt) from the previous week.

In Bangladesh, a Saudi Arabian producer has offered its LLDPE film grade at the USD 980/mt levels for shipment in end June/early July 2025 shipment . A Middle Eastern producer has offered its LLDPE film grade at the USD 950/mt CFR levels, for shipment in end June/early July 2025 shipment .

The Bangladesh market experienced low activity as most buyers remained on the sidelines because of the Eid al-Adha holiday. Trading is anticipated to gradually witness an upswing as participants return to the markets.

Feedstock ethylene prices on Tuesday were assessed flat at the USD 775-785/mt CFR North East Asia levels while CFR South East Asia ethylene prices were assessed at the USD 845-855/mt levels, both unchanged week on week.