Southeast Asia Polymer Markets Show Uneven Correction After War Rally

Polymer markets across Southeast Asia have continued to retreat from the sharp gains recorded during the Middle East conflict, but the pace of correction varies significantly by product. While some markets have nearly returned to normal levels, others still remain considerably above their pre-conflict prices despite weak demand and comfortable supply conditions.

PVC Leads the Correction

Among major polymers, PVC has seen the strongest adjustment. After surging sharply during the conflict period, prices have steadily declined over recent months as abundant supply and sluggish buying activity weighed on the market.

Aggressive pricing from Northeast Asian suppliers and successive offer reductions across the region have accelerated the correction. As a result, PVC prices are now only slightly higher than levels seen before the conflict-driven rally, making it the closest market to full normalization.

PET, PP and LDPE Still Carry Strong Premiums

In contrast, PET bottle resin, homo PP, and LDPE film continue to trade significantly above their pre-conflict levels.

PET prices have eased only modestly from their recent highs, supported by relatively firm market conditions. Similarly, PP has retained much of its earlier gains due to periodic supply constraints and limited availability in some regions.

LDPE remains one of the strongest markets, with prices still elevated despite recent declines. Compared to other polymers, these three products have surrendered only a small portion of their earlier gains.

HDPE, LLDPE, ABS and GPPS Show Moderate Correction

HDPE and LLDPE have recorded more visible declines as increased supply and aggressive Chinese offers pressured regional markets. However, prices remain noticeably above pre-conflict levels.

ABS and GPPS have followed a similar pattern. Both products moved lower after reaching multi-year highs earlier in the year, but current values continue to reflect a substantial premium compared to levels seen before the geopolitical rally.

Market Dynamics Becoming Product-Specific

The latest market trend suggests Southeast Asia's polymer markets are no longer moving in a uniform direction. Instead, each product is increasingly being influenced by its own supply-demand fundamentals.

Markets facing intense competition, rising inventories, and strong Chinese export pressure have corrected more rapidly. Meanwhile, products supported by tighter availability or stronger regional demand have remained relatively firm.

Outlook Remains Cautious

Buyers across the region continue to adopt a hand-to-mouth purchasing strategy, limiting purchases to immediate requirements. Weak downstream demand and sufficient supply remain key concerns for most market participants.

Unless energy and feedstock markets experience another sustained rally, many traders believe additional corrections are possible during the coming weeks, particularly for products that still carry large premiums over pre-conflict levels.

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