Low-density polyethylene (LDPE) prices trended lower across Asia this week, pressured by weak demand, currency volatility, and rising competition from surplus cargoes. An industry source in Asia told a team member on condition of anonymity that OPEC+ has signaled a planned production hike in November, while crude exports have resumed from Iraq’s Kurdish region, collectively weighing on global oil benchmarks and contributing to downstream softness.
In Far East Asia, LDPE film grade prices were assessed at USD 1020-1060/mt CFR, unchanged from last week. Middle Eastern producers kept their October shipment offers steady within this range. Discussions in China, however, concentrated at the lower end as heavy inflows from the US continued. Suppliers pushed forward shipments ahead of the fourth quarter, traditionally a peak season for US exports, while Brazil’s recent imposition of anti-dumping duties on US-origin PE further redirected volumes to China. Despite stable Middle Eastern offers, sentiment remained cautious, with minor adjustments expected after China’s National Day holiday.
Southeast Asia saw LDPE film grade prices at USD 1050-1080/mt CFR, down USD (-10/-20/mt) week on week. Some Middle Eastern suppliers trimmed October offers amid stronger competition from regional producers, while competitively priced US-origin cargoes exerted further pressure, particularly in Vietnam. Buyers remained selective, as wide-ranging offers highlighted the uncertainty prevailing in the regional market.
In India, LDPE film grade prices were assessed lower at USD 1070-1100/mt CFR, down USD (-10/mt) from last week. Middle Eastern suppliers placed offers in this range for October shipments, though some traders floated levels as low as USD 1060/mt. Reliance Industries Limited (RIL) announced a reduction of Rs.2/kg in domestic LDPE prices effective October 1, 2025, while also withdrawing price protection. Weak demand, currency depreciation against the dollar, and monsoon disruptions kept sentiment subdued. However, the recent Goods and Services Tax (GST) cut effective September 22 could stimulate short-term demand, as FMCG majors begin dispatching delayed orders to converters.
Pakistan’s LDPE prices were assessed at USD 1050-1070/mt CFR, falling by USD (-20/mt). Offers from overseas suppliers were heard at USD 1070-1090/mt for October shipments, though deals were largely concluded at the lower end, reflecting restricted buying interest and quiet activity.
Sri Lanka’s LDPE market registered prices at USD 1130-1150/mt CFR, down USD (-10/mt) week on week. Buyers withheld from new purchases, expecting more competitive offers ahead, keeping transaction volumes low and sentiment weak.
Bangladesh also saw LDPE film grade prices decline, assessed at USD 1120-1150/mt CFR, lower by USD (-10/mt). Sellers remained cautious, modifying offers to entice buyers, though trading is likely to stay quiet until later in the month when fresh October cargoes provide clearer direction.
Feedstock ethylene costs fell sharply, with CFR Northeast Asia assessed at USD 805-815/mt, down USD (-35/mt), and CFR Southeast Asia at USD 805-815/mt, a decrease of USD (-30/mt). The decline in upstream ethylene further pressured regional LDPE sentiment.
In plant developments, Sinopec Maoming Petrochemical is expected to shut its No.2 LDPE unit in Guangdong, China, by early November 2025 for maintenance. The unit, with a capacity of 280,000 mt/year, will undergo a turnaround of unspecified duration, though the timeline remains unconfirmed.
With US-origin supplies rerouted into China, subdued downstream consumption across South Asia, and falling feedstock costs, LDPE markets in Asia are expected to remain under pressure in the near term, with any meaningful recovery likely hinging on post-holiday restocking and improved demand visibility.
