PolymerTuesday, 19 May 2026·India
Aggressive US PE Offers Increase Competitive Pressure in Southeast Asia
Southeast Asia’s import polyethylene (PE) market continued to face heavy pressure last week as sharply discounted US-origin cargoes intensified competition among global suppliers and maintained bearish sentiment across the region.
Although supply constraints from the Middle East continued to provide some underlying support to the market, weak downstream demand and cautious buying activity kept most buyers away from large-volume purchases.
Market participants said the latest decline was mainly driven by slowing demand rather than excess immediate supply. Converters across the region have been struggling with weak margins after securing high-priced material during March and April, while poor end-product demand has made it difficult to pass higher resin costs on to customers.
As a result, many buyers have shifted toward strict inventory control and reduced operating rates to avoid additional financial pressure.
One of the key developments in the market was the emergence of highly competitive US-origin PE offers. Some US cargoes were reported lower by as much as $180/ton compared to the previous week, with certain HDPE film offers even falling below Chinese-origin levels at the low end of the market.
The aggressive US pricing further increased concerns about additional price corrections, particularly in Vietnam, where buyers remained highly cautious about fresh purchases.
A Vietnamese trader noted that buyers are avoiding inventory accumulation due to fears of further declines and potential stock losses. The source added that US cargoes have become increasingly visible in the market, while some Chinese traders were also reportedly re-exporting US material at deeply discounted levels.
The recent corrections pushed low-end LDPE film offers below the $1600/ton CIF level, while HDPE film prices dropped beneath the important $1300/ton CIF mark, adding pressure on competing suppliers from other regions.
At the same time, Chinese suppliers continued expanding their presence in Southeast Asia through aggressive pricing strategies supported by stable feedstock availability and growing production output. Market players said Chinese material is increasingly influencing regional pricing trends, forcing other suppliers to lower offers to remain competitive.
Meanwhile, buying interest for Middle Eastern and Taiwanese cargoes remained limited despite ongoing supply constraints from the Middle East. Concerns over shipment delays and logistical disruptions continued discouraging buyers from building inventories in an already declining market.
With suppliers from the US, China, and other regions competing aggressively for market share, market sentiment is expected to remain cautious in the near term, especially as seasonal demand weakness approaches and buyers continue prioritizing inventory management over forward purchasing.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Although supply constraints from the Middle East continued to provide some underlying support to the market, weak downstream demand and cautious buying activity kept most buyers away from large-volume purchases.
Market participants said the latest decline was mainly driven by slowing demand rather than excess immediate supply. Converters across the region have been struggling with weak margins after securing high-priced material during March and April, while poor end-product demand has made it difficult to pass higher resin costs on to customers.
As a result, many buyers have shifted toward strict inventory control and reduced operating rates to avoid additional financial pressure.
One of the key developments in the market was the emergence of highly competitive US-origin PE offers. Some US cargoes were reported lower by as much as $180/ton compared to the previous week, with certain HDPE film offers even falling below Chinese-origin levels at the low end of the market.
The aggressive US pricing further increased concerns about additional price corrections, particularly in Vietnam, where buyers remained highly cautious about fresh purchases.
A Vietnamese trader noted that buyers are avoiding inventory accumulation due to fears of further declines and potential stock losses. The source added that US cargoes have become increasingly visible in the market, while some Chinese traders were also reportedly re-exporting US material at deeply discounted levels.
The recent corrections pushed low-end LDPE film offers below the $1600/ton CIF level, while HDPE film prices dropped beneath the important $1300/ton CIF mark, adding pressure on competing suppliers from other regions.
At the same time, Chinese suppliers continued expanding their presence in Southeast Asia through aggressive pricing strategies supported by stable feedstock availability and growing production output. Market players said Chinese material is increasingly influencing regional pricing trends, forcing other suppliers to lower offers to remain competitive.
Meanwhile, buying interest for Middle Eastern and Taiwanese cargoes remained limited despite ongoing supply constraints from the Middle East. Concerns over shipment delays and logistical disruptions continued discouraging buyers from building inventories in an already declining market.
With suppliers from the US, China, and other regions competing aggressively for market share, market sentiment is expected to remain cautious in the near term, especially as seasonal demand weakness approaches and buyers continue prioritizing inventory management over forward purchasing.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.