PolymerWednesday, 22 April 2026·India
China stabilizes markets as polymer surge in Southeast Asia hits resistance
The recent Middle East conflict triggered a sharp rally across Southeast Asia’s polymer markets, with prices jumping 40–60% within weeks and reaching levels not seen in years. However, the upward trend has started to face resistance, as growing price differences with China have limited further gains and, in some cases, led to corrections.
Data trends show that most polymer prices climbed significantly from pre-conflict levels around early March, peaking between late March and mid-April. As prices rose, demand began to weaken, and competitive supply from China started influencing market direction.
Polyolefins lead surge, but China creates pressure
Polyolefins saw the strongest gains during the rally. PP and PE grades recorded increases of nearly 55–60%, touching multi-year highs across Southeast Asia markets. The surge was mainly driven by supply disruptions from the Middle East, along with higher logistics costs and rerouted shipments.
As prices climbed, the gap between China and Southeast Asia widened sharply. This created arbitrage opportunities, encouraging Chinese suppliers to push more material into the region. Recently, Chinese offers—especially for PP and LLDPE—have declined, putting pressure on local price levels.
Despite some buying interest at lower prices, overall demand has remained weak. Buyers are cautious, purchasing only as needed due to margin pressure and uncertainty in the market.
PVC sees sharp reversal amid strong Chinese supply
Unlike other polymers, PVC experienced a quicker turnaround. After rising significantly in the early phase of the rally, prices began to fall steadily from mid-April. The decline was largely driven by aggressive Chinese exports, which dominated the market with more competitive pricing.
China continues to hold a major share of Southeast Asia’s PVC imports, allowing buyers to shift easily toward cheaper cargoes. Lower-priced Chinese material forced other suppliers to reduce their offers, reinforcing the downward trend. Market sentiment remained weak as higher price expectations failed to translate into actual deals.
PET gains fade as demand slows
PET bottle resin followed a similar pattern, initially rising sharply before losing momentum. Prices climbed strongly through mid-April but started easing as demand weakened and crude oil prices softened.
Chinese supply once again played a key role, anchoring the market and accelerating the correction. Buyers have become more cautious, delaying purchases in anticipation of further price declines.
Styrenics lose strength after peak
Styrenic polymers also mirrored the broader trend. Prices for products like GPPS, ABS, and HIPS surged to multi-year highs, supported by higher feedstock costs and limited supply. However, the rally did not sustain for long.
Recently, prices have started to decline as upstream costs eased and demand remained subdued. Increased availability of Chinese material further pressured prices, while trading activity stayed limited with buyers sticking to essential purchases only.
Overall, while the initial rally was driven by supply disruptions, China’s growing presence in the market has acted as a balancing force, preventing prices from sustaining at peak levels and reshaping the regional market dynamics.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Data trends show that most polymer prices climbed significantly from pre-conflict levels around early March, peaking between late March and mid-April. As prices rose, demand began to weaken, and competitive supply from China started influencing market direction.
Polyolefins lead surge, but China creates pressure
Polyolefins saw the strongest gains during the rally. PP and PE grades recorded increases of nearly 55–60%, touching multi-year highs across Southeast Asia markets. The surge was mainly driven by supply disruptions from the Middle East, along with higher logistics costs and rerouted shipments.
As prices climbed, the gap between China and Southeast Asia widened sharply. This created arbitrage opportunities, encouraging Chinese suppliers to push more material into the region. Recently, Chinese offers—especially for PP and LLDPE—have declined, putting pressure on local price levels.
Despite some buying interest at lower prices, overall demand has remained weak. Buyers are cautious, purchasing only as needed due to margin pressure and uncertainty in the market.
PVC sees sharp reversal amid strong Chinese supply
Unlike other polymers, PVC experienced a quicker turnaround. After rising significantly in the early phase of the rally, prices began to fall steadily from mid-April. The decline was largely driven by aggressive Chinese exports, which dominated the market with more competitive pricing.
China continues to hold a major share of Southeast Asia’s PVC imports, allowing buyers to shift easily toward cheaper cargoes. Lower-priced Chinese material forced other suppliers to reduce their offers, reinforcing the downward trend. Market sentiment remained weak as higher price expectations failed to translate into actual deals.
PET gains fade as demand slows
PET bottle resin followed a similar pattern, initially rising sharply before losing momentum. Prices climbed strongly through mid-April but started easing as demand weakened and crude oil prices softened.
Chinese supply once again played a key role, anchoring the market and accelerating the correction. Buyers have become more cautious, delaying purchases in anticipation of further price declines.
Styrenics lose strength after peak
Styrenic polymers also mirrored the broader trend. Prices for products like GPPS, ABS, and HIPS surged to multi-year highs, supported by higher feedstock costs and limited supply. However, the rally did not sustain for long.
Recently, prices have started to decline as upstream costs eased and demand remained subdued. Increased availability of Chinese material further pressured prices, while trading activity stayed limited with buyers sticking to essential purchases only.
Overall, while the initial rally was driven by supply disruptions, China’s growing presence in the market has acted as a balancing force, preventing prices from sustaining at peak levels and reshaping the regional market dynamics.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.