Southeast Asia PE Prices Stabilize After Two-Month Rally

Import polyethylene (PE) prices in Southeast Asia have largely stabilized after a sustained rally that began in mid-July. Prices are now hovering near their highest levels in three to four months, following gains of around 25% for LDPE film, 28% for LLDPE film and 24% for HDPE film over the past two months.

Market activity has remained subdued, with fewer offers circulating across the region. Firm energy costs and elevated freight rates continue to support prices, but persistent weakness in downstream demand is limiting further gains. Buyers remain cautious about purchasing at elevated levels and are mostly covering immediate requirements, reducing the scope for another significant upward move.

Middle Eastern Offers Remain Firm

Middle Eastern PE offers continue to be supported by high production costs, expensive freight and limited vessel availability. Rising shipping expenses are making it increasingly difficult for sellers and buyers to finalize deals.

A Saudi producer announced October-shipment PE offers for Vietnam, with deliveries scheduled for January-February 2027. Some transactions were concluded at $1,260-1,270/ton for LLDPE film and $1,280/ton for HDPE film, slightly below initial asking levels, showing that buyers continued to negotiate despite restricted availability.

A Vietnamese trader said its entire allocation had been sold, despite limited room for discounts because of high raw material and shipping costs. However, some buyers have chosen to remain on the sidelines due to the additional freight risks associated with the cargoes.

US PE Remains the Most Competitive Source

US-origin PE continues to form the lower end of Southeast Asian import price ranges for LDPE film, LLDPE film and HDPE film. Despite this price advantage, buying interest remains limited.

Long delivery times and concerns about a possible price decline before cargoes arrive are discouraging buyers. A trader handling US material said market activity remained quiet, with both prompt and forward shipments proving difficult to sell.

South Korean Offers Reappear at High Levels

South Korean PE offers have returned for the three major film grades, but current levels remain above prevailing market indications and appear difficult to sustain amid weak demand.

A Malaysian converter said it had avoided purchases because prices remained too high while demand was weaker than expected and existing stocks were sufficient. A Vietnamese converter similarly reported skipping new offers and purchasing only when necessary.

Overall, Southeast Asia’s PE market is showing signs of stabilization after its sharp two-month advance. Elevated costs and restricted availability continue to support prices, while weak consumption and comfortable inventories are limiting further upward movement.

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