In the import PE markets of China and Southeast Asia, prices of all grades fell further this week, with quotes falling below or near the $900/ton CIF threshold in the low-end segments. Traders blamed persistently weak final demand for the continued decline, while an eight-week slide in ethylene prices contributed to the downtrend.

One trader said: “Converters across Asia are having a hard time keeping their businesses profitable amid the global economic downturn. Operating capacity at many factories has been cut due to a decrease in orders from both domestic and export markets.”

LD, LLDPE prices fall below $900 in China

Fluctuating around year-to-date lows, LDPE and LLDPE prices in China have dropped another $10-20/ton so far this week, with both products falling below the $900/ton mark. tons of CIF.

The overall price range of imported LDPE and LLDPE film stood at $880-940/ton and $880-930/mt CIF China, cash, respectively, as of June 7. Several quotes from the Middle East were on par. or below other origins including India, the United States or the Russian Federation.

ChemOrbis data shows that the spread of LDPE against LLDPE was stable from last week at $5/ton, the lowest level since March 2019. Under a balanced market condition, LDPE has a wide spread. higher than LLDPE and HDPE film.

LD, LL Middle East quoted under $950 CIF Southeast Asia

While imported LDPE and LLDPE film fell below $900/ton in China, they saw levels below $950/ton in Southeast Asia this week. Middle Eastern origins are quoted $940-960/ton for LDPE and $920-960/ton for LLDPE film, all on CIF Southeast Asia, cash, down $20-40/ton compared to last week.

In Vietnam, traders reported that US LLDPE film quotes were as low as $900/ton CIF, while Indian LLDPE was bought at $920/ton CIF in Malaysia.

HDPE is operating relatively well but prices still fall

Outperforming LLDPE and LDPE film, HDPE film prices managed to maintain a premium above them but still saw weekly declines amid overall bearish sentiment.

As of June 7, the general price range of imported HDPE film was at $900-970/ton CIF China, cash, stable or down $30/ton from last week. In Southeast Asia, prices were recorded to decrease by 20-40 USD/ton from last week to 960-1000 USD/ton CIF, cash.

Traders say June signals further bearish bias

Traders operating in China and Southeast Asia anticipate further declines, driven by an elusive recovery in demand coupled with increased supply of most PE grades in expected regional markets. will maintain downward pressure.

A Chinese trader said deals have been signed for shipments originating from the Middle East at $910-930/ton HDPE film and $880-920/ton LDPE film, China CIF, money. face. He added: “We have signed a number of transactions although with low volume. Supply loosened while demand continued to be weak. The momentum of China's economic recovery is also uncertain. We think the Chinese market will continue to decline in June.”

Another Chinese trader said: “June is the traditional low season for PE, so downstream orders fell short of expectations, leading to reduced operating capacity. Looking ahead, we think supply and demand fundamentals will remain weak, adding more downward pressure on spot contracts.”

A trader in Singapore also said: “Quotes of all PE grades have dropped, pressured by months of low demand, leading to an increase in oversupply. Southeast Asian economies are export-oriented, so the recovery in demand has been affected by the global economic slowdown. Downstream output has declined, with some plants operating at only 60-70% capacity. Key segments such as retail, food packaging, electronics, automotive and medical all stagnated. Converters are holding on to an increased inventory of finished goods. PE prices are likely to continue to come under pressure as demand has not recovered.”