Asian polyethylene and polypropylene markets displayed mixed trends this week, with most grades holding steady while certain segments posted modest movements against a backdrop of oversupply, muted demand, and heightened geopolitical tensions. Market participants pointed to the Russia–Ukraine conflict and its impact on energy infrastructure as a source of short-term volatility, though futures markets signaled near-term tightness despite forecasts of oversupply.
High-density polyethylene (HDPE) prices largely rolled over across Asia. While Ukrainian strikes on Russian energy facilities initially raised supply concerns, markets adjusted swiftly, leaving spot values stable. In China, sentiment was dominated by expectations of sweeping government reforms in the petrochemical and refining sectors, though traders noted these were unlikely to alter short-term pricing. In Southeast Asia, assessments showed little movement, with offers from some Middle Eastern suppliers arriving above current ranges but attracting limited interest. Local supply pressure has risen following the restart of Vietnam’s Long Son Petrochemical and ongoing production at Malaysia’s PRefChem, leading to intensified competition. Buyers are now waiting for September cargoes before committing to fresh purchases. In India, prices were mostly steady but dampened by monsoon-related weakness in downstream demand. Traders remain hopeful of a seasonal pickup ahead of the festive period. In Pakistan, the introduction of new electronic invoicing rules curbed buying interest, though expectations of demand recovery in September remain. Sri Lanka and Bangladesh also reported stability, with buyers awaiting fresh import offers.
Low-density polyethylene (LDPE) markets were subdued. China’s LDPE values held stable as buyers resisted higher international offers, preferring to wait for additional September shipments. Southeast Asia mirrored this pattern, with stable-to-soft assessments amid sporadic deals. In India, LDPE edged lower as prolonged rains suppressed downstream consumption despite concerns about Middle Eastern supply. Pakistan, Sri Lanka, and Bangladesh saw little change, as cautious buyers stayed on the sidelines pending new import indications.
Linear low-density polyethylene (LLDPE) presented more divergence. Prices in Far East Asia increased on firmer macroeconomic sentiment and cost support, with Chinese demand lending buoyancy. Supply remained constrained despite plant restarts, while Saudi and South Korean producers lifted September offers. Still, caution prevailed as large volumes of US and Chinese cargoes are expected to weigh on regional markets in coming months. Southeast Asia saw weakening demand, particularly in Vietnam, where the Long Son Petrochemical complex boosted domestic supply, making imports less competitive. India’s LLDPE film availability was slightly restricted, but overall sentiment remained subdued due to weak demand, currency pressures, and uncertainty tied to new US tariffs. In Pakistan, optimism lingered for a September rebound post-monsoon, supported by resumed Saudi offers and steady Iranian inflows. Sri Lanka and Bangladesh held steady, with limited activity until September cargoes are announced.
Polypropylene (PP) prices softened in parts of Asia. In China, oversupply and weak demand led to lower domestic prices as traders trimmed offers to stimulate buying. Export competitiveness also waned amid low-priced shipments from Southeast Asia. In India, PP prices slipped across grades as monsoon conditions and currency depreciation undercut demand, while tariff-related uncertainty dampened sentiment further. Pakistan saw similar declines as electronic invoicing rules disrupted purchasing. By contrast, Southeast Asia and South Asia’s smaller markets, including Sri Lanka and Bangladesh, reported steady pricing as most buyers waited for September offers.
Polystyrene (PS) and acrylonitrile butadiene styrene (ABS) markets held steady across the region despite marginal increases in styrene and butadiene costs. Producers maintained stable offer levels, while downstream converters kept purchases light to avoid inventory risks. Sentiment remained fragile, with limited structural improvement in demand expected before autumn.
Polyvinyl chloride (PVC) stood out as the stronger segment this week. A leading Taiwanese producer raised offers, pushing regional values higher. China’s domestic spot market was broadly stable, though export offers met buyer resistance. Southeast Asia saw higher import offers with cautious restocking activity. In India, sentiment was boosted by the government’s proposal to impose anti-dumping duties on suspension-grade PVC, prompting both domestic and international suppliers to lift prices. Pakistan, however, continued to face subdued PVC demand due to monsoon disruptions, even as supply improved compared to last week.
Polyethylene terephthalate (PET) remained stable throughout Asia. Market activity was restrained by soft packaging and beverage demand, leaving manufacturers struggling with thin margins. While polyester producers benefited from stronger winter apparel orders, PET makers continued to face muted fundamentals, underscoring the divergence in demand trends across related value chains.
Overall, the Asian polymer complex reflected a mix of stability and selective strength, with PVC firming on policy shifts while most polyolefins remained rangebound. Market participants expect September to bring greater clarity, with seasonal restocking in India and China likely to determine whether demand can offset persistent oversupply pressures.
