In the US, propylene prices remained broadly stable on Tuesday as trading volumes sagged. According to a source in the region, the market bore the mark of a disconnect between what buyers are willing to pay and what sellers are asking, keeping the pricing tone flat. Polymer grade propylene continued to trade in the 32.50-33.00 cents per lb FD US Gulf range, with refinery grade holding firm at 28.50-29.00 cents per lb.
Meanwhile, over in Asia, Linear Low-Density Polyethylene (LLDPE) prices slipped this week, pressured by a combination of domestic weak demand, shrinking import arbitrage margins, and the influx of competitively priced foreign offers. In Far East Asia, film-grade LLDPE dropped to USD 840-880/mt CFR, down by approximately USD 10/mt from the previous week. In Southeast Asia, the falls were steeper, with prices falling around USD 20/mt to USD 890-950/mt CFR.
Specific supplier offers added further nuance: in China, a Saudi Arabian producer quoted its film-grade LLDPE at USD 840/mt for September delivery, while an Indian producer put forward offers in the USD 880/mt bracket for October. Middle Eastern suppliers broadly pitched in the USD 840-880/mt range for October shipments. In India, LLDPE was pegged to USD 900-930/mt CFR, reflecting a USD 10/mt drop week-on-week, amid weak downstream activity, large converter inventories, and continuing rupee depreciation.
Regional market dynamics were largely defensive. In countries like Vietnam and others in Southeast Asia, U.S.-origin imports at lower landed costs weighed on local sentiment and muted buying behavior. Buyers largely refrained from significant purchases, instead limiting themselves to near-term or necessity-driven needs. The expectation of further price falls, combined with macroeconomic uncertainties, kept restocking minimal.
Looking forward, the short-term outlook for LLDPE in Asia appears soft. Unless downstream demand picks up appreciably after upcoming festivals or there is a tightening of supply, whether through plant turnarounds, export constraints, or currency swings, prices are unlikely to see strong upward movement.
