China’s polyethylene market has seen another round of September offers emerge, with a leading Saudi Arabian producer heard to have announced its price for metallocene linear low-density polyethylene (mLLDPE) at USD 1,005 per metric ton. The cargoes are being offered on a CFR China Main Port basis for shipment next month, according to a source.
The offer comes at a time when the Chinese market remains cautious, as converters continue to face weak downstream demand in packaging, film, and consumer goods. Despite mLLDPE’s reputation as a premium polyethylene grade with higher strength and sealing performance, buyers have been reluctant to commit to large volumes due to the pressure of high inventories and sluggish macroeconomic indicators. Traders noted that while demand may see some seasonal improvement in September, much of the market is holding back until a broader set of offers is released from international suppliers.
The USD 1,005/mt offer positions Saudi material competitively within the Asian market, closely aligned with levels recently quoted by producers from Canada and Thailand. Market participants observed that such pricing reflects growing competition among exporters to secure a foothold in China, particularly as oversupply looms and domestic production continues to weigh on sentiment. For Chinese buyers, the convergence of offers may present an opportunity to negotiate better terms, especially as suppliers seek to lock in volumes before regional demand patterns become clearer.
Observers suggested that the Saudi offer could act as a benchmark in upcoming negotiations, helping set the tone for September trade flows. However, the scale of procurement will ultimately depend on how quickly downstream sectors, particularly packaging and agriculture, can absorb fresh material. Until then, the market outlook remains cautious, with buyers balancing cost pressures against limited consumption growth.
