Sri Lanka’s polyethylene market saw fresh offers this week, with a Middle Eastern producer heard to have announced prices for linear low-density polyethylene (LLDPE) film grades in the range of USD 1,000–1,010 per metric ton on a CFR Colombo port basis for September 2025 shipment, according to a source. The commercial terms were reported as 100% telegraphic transfer (TT) in advance.
Market participants remarked that the offers arrive at a time when Sri Lanka’s polymer sector continues to struggle with muted demand, shaped by broader economic headwinds and currency-related challenges. While LLDPE film remains one of the most essential grades for packaging and consumer goods applications, converters have adopted a conservative approach to procurement in recent months, preferring small-lot purchases rather than committing to bulk volumes.
The quoted range of USD 1,000–1,010/mt is viewed as competitive compared to some other regional offers, but the requirement for full advance payment may temper interest among buyers dealing with tight liquidity conditions. Traders added that many importers are carefully weighing the risks of locking in early September shipments against the possibility of softer pricing as more Middle Eastern and Asian suppliers release their offers in the coming weeks.
Despite subdued buying sentiment, suppliers remain cautiously optimistic that September will bring improved trade activity, with seasonal restocking expected in packaging and agricultural sectors. However, geopolitical uncertainty in the Middle East, combined with weaker global demand fundamentals, continues to cloud the near-term outlook. Market players emphasized that Sri Lankan buyers are likely to remain selective, focusing on suppliers offering both price competitiveness and favorable payment terms.
Industry observers noted that the new offers from the Middle East are likely to set the tone for upcoming negotiations, serving as a reference point for other suppliers targeting Sri Lanka. Whether the market absorbs these levels will depend largely on the pace of downstream demand recovery and the financial capacity of buyers to commit under stricter payment conditions.
