Low-density polyethylene (LDPE) prices across Asia edged lower this week, weighed down by subdued downstream demand, currency pressures, and ample spot availability, despite firm offers from Middle Eastern suppliers and scheduled plant maintenance on the horizon.
In Far East Asia, LDPE film grade values were assessed at USD 1030–1060/mt CFR, showing a marginal rise of USD 10/mt from the prior week. In China, market activity was characterized by a widening gap between buyers’ and sellers’ price expectations. Middle Eastern producers continued to maintain firm offers, bolstered by expectations of reduced supply following planned Q4 maintenance closures. Yet, converters largely gravitated toward cheaper U.S. shipments, which kept actual transaction levels anchored near the bottom of the assessment range. Downstream sectors remained sluggish, with slow consumption preventing any meaningful price recovery, despite sellers’ attempts to push values higher.
Southeast Asia saw little change, with LDPE film grade prices assessed steady at USD 1070–1120/mt CFR. Producers from the Middle East and Eastern Europe floated offers into markets such as Vietnam and Indonesia, though competitively priced U.S. cargoes for November–December delivery provided additional downward pressure. Even so, overall U.S. availability was limited, which prevented sharper declines. Converters in the region showed signs of stock-building ahead of the typical seasonal demand surge in October and November, but operating rates at manufacturing plants were still capped near 60%, underscoring the fragility of consumption compared with last year. Tariffs of nearly 20% on U.S. imports further constrained the competitiveness of American cargoes in the region.
In India, CFR assessments slipped to USD 1110–1140/mt, down USD 10/mt week on week. Traders cited sluggish demand, cheaper imports, and ongoing macroeconomic challenges as the main drivers. Recent U.S. tariff hikes, which raised duties on Indian imports to 50%, combined with the rupee’s slide toward record lows, intensified cost pressures for buyers. Logistics complications tied to heavy monsoon rains further disrupted trade flows, reducing confidence among converters who remain hesitant to commit to new purchases until pricing stabilizes.
Pakistan’s LDPE market also softened, with CFR prices at USD 1090–1110/mt, down by as much as USD 10/mt. Severe flooding and heavy rainfall continued to paralyze transportation routes from Karachi port to industrial centers, curbing trade and weakening demand. Meanwhile, Sri Lanka and Bangladesh both recorded CFR levels at USD 1150–1180/mt, lower by USD 10/mt from last week. Here, purchasing activity remained subdued, as buyers, facing economic uncertainty and already high stock levels, opted for a wait-and-see approach.
Feedstock dynamics showed little change, with ethylene values steady at USD 835–845/mt CFR North East Asia and edging slightly higher by USD 5/mt to USD 830–840/mt CFR South East Asia. Market watchers noted that this relative stability provided little momentum for LDPE producers seeking firmer margins.
In plant news, Sinopec Maoming Petrochemical is reportedly planning to shut its No.2 LDPE unit in Guangdong by early November 2025 for a maintenance turnaround. The 280,000 mt/year facility’s downtime could reduce near-term availability, but the exact schedule and duration remain unconfirmed.
Overall, Asia’s LDPE market remains caught between the cost support offered by firm supplier offers and the downward pull of weak demand, logistical disruptions, and macroeconomic pressures. Unless seasonal restocking and Q4 festivities spur a tangible revival in consumption, prices are expected to remain under pressure, with sentiment leaning neutral to slightly bearish in the near term.
