High-density polyethylene (HDPE) prices across Asia remained unchanged this week, with stability masking underlying weakness as oversupply, sluggish downstream demand, and broader macroeconomic headwinds continued to weigh on sentiment.
A source in Asia highlighted the persistent uncertainty caused by the Russia–Ukraine conflict and ongoing U.S. sanctions on major oil producers, which have fueled volatility in global crude oil markets. Elevated feedstock costs have complicated the outlook, but in the HDPE sector, abundant supply and limited consumption have left prices largely flat across key regional hubs.
In Far East Asia, film grade HDPE was assessed at USD 860–910/mt CFR, blow moulding at USD 840–900/mt, injection at USD 830–860/mt, and yarn at USD 880–900/mt, all steady week on week. In China, Middle Eastern producers offered film grades at USD 890–900/mt CFR for September shipments, while Saudi suppliers were heard at USD 900/mt and Asian producers at USD 860–880/mt. The market leaned stable-to-soft, as sellers attempted to hold firm ahead of Q4 plant maintenance schedules, while buyers sought out more affordable U.S. cargoes. Spot availability remained sufficient, and downstream sectors showed only tentative signs of recovery, leaving transaction levels near the bottom of the range.
In Southeast Asia, film grade was assessed at USD 890–940/mt CFR, blow moulding at USD 840–890/mt, injection at USD 840–890/mt, and yarn at USD 920–960/mt, all unchanged from the prior week. New offers surfaced in Vietnam, the Philippines, and Malaysia, with regional and Middle Eastern producers quoting around USD 900–940/mt CFR, while U.S. suppliers sought to place cargoes at more competitive levels near USD 880/mt. Despite steady prices, demand weakened as new domestic capacities in Vietnam and Malaysia added to supply, while November–December U.S. shipments created additional competitive pressure. With converters restocking modestly ahead of peak October–November demand, overall production remained at just 60% of capacity, reflecting weak end-use consumption compared with last year.
In India, HDPE film was assessed steady at USD 920–950/mt CFR, yarn at USD 900–940/mt, injection at USD 910–960/mt, and blow moulding at USD 910–930/mt. Reliance Industries Limited rolled over prices from September 1, though sentiment in India stayed muted due to fresh U.S. tariffs raising duties on Indian imports to 50% and a weak rupee driving up import costs. Heavy rainfall disrupted logistics in the north, further dampening activity. Sellers expressed cautious optimism for stronger festival-driven consumption in September, though oversupply and currency-related cost pressures were expected to cap any significant rebound.
In Pakistan, HDPE prices also held steady, with film assessed at USD 940–970/mt CFR, blow moulding at USD 950–980/mt, yarn at USD 950–980/mt, and injection at USD 940–970/mt. Heavy rains and flooding disrupted supply chains from Karachi port to industrial centers, limiting trade and suppressing downstream activity. Meanwhile, oversupply was worsened by the arrival of Iranian cargoes and earlier July bookings, leaving inventories high and sentiment bearish.
In Sri Lanka and Bangladesh, HDPE prices stayed relatively stable. Sri Lanka saw film and blow moulding quoted at USD 940–980/mt CFR, with injection at USD 950–970/mt and yarn at USD 960–980/mt. Bangladesh assessments held at USD 930–970/mt CFR for film and USD 920–960/mt for blow moulding, injection, and yarn. Both markets reported subdued activity, with buyers hesitant to commit amid high inventories and weak end-use demand.
Upstream, ethylene prices offered little direction, assessed steady at USD 835–845/mt CFR Northeast Asia and slightly higher at USD 830–840/mt CFR Southeast Asia, up USD 5/mt from the prior week.
On the supply front, maintenance activity is reshaping expectations. USI Corp shut its 160,000 mt/year HDPE plant in Kaohsiung, Taiwan, on September 1, while Ningxia Baofeng Energy idled a 400,000 mt/year HDPE unit in Yinchuan in late August. Sinopec Maoming Petrochemical is also expected to conduct a turnaround at its Guangdong HDPE facilities in early November, with a combined capacity of 400,000 mt/year. These outages, however, have yet to significantly alter market balance, given ongoing oversupply and muted demand across the region.
Overall, the Asian HDPE market remains locked in a cycle of stability with weak undertones. While maintenance turnarounds may provide some temporary relief, persistently high inventories and fragile consumption continue to limit optimism. Unless downstream demand revives meaningfully, prices are likely to remain range-bound with a neutral-to-soft bias in the near term.
