Asian PE Trends Remain Weak Amid Ample Supply and Limited Demand Support

Key Highlights

• Prices weak: Global PE offers dropped by $25/MT across major grades.
• Demand sluggish: Packaging and agri-film consumption softened post-festive season.
• Supply rising: Imports and resumed plant operations added inventory pressure.
• Outlook bearish: Producers continue cutting offers, signalling market bottoming.

PE Market Price: HDPE, LLDPE, LDPE

HDPE and LDPE prices across major Indian hubs remained stable to slightly weak:

• HDPE (Prime) – Delhi
  a. BM: ₹86,000/MT
  b. Raffia: ₹90,000/MT
  c. PE80: ₹86,500/MT
  d. PE100 Natural: ₹87,500/MT
   
• LDPE (Prime) – Delhi
  a. 4 MFI Slip GP: ₹1,16,000/MT
  b. 2 MFI Non-Slip: ₹1,07,000/MT
   
• LLDPE (Prime)
  a. HMEL Roto Moulding (R0536L), Ahmedabad: ₹91,500/MT
  b. HMEL 1 MFI Non-Slip (F0118L), Delhi: ₹86,000/MT
  c.LLDPE 2 MFI Non-Slip, Delhi: ₹86,000–85,500/MT

Global Polymer Offers – South Asia / Southeast Asia
PE prices softened further by $25/MT across major grades including HD IM, HD Blow, HM Film, LLDPE, and HD Yarn.

Demand & Supply: Weak Demand and Rising Supply Continue to Pressure PE Market

Polyethylene market fundamentals remained weak through November, with:

• Supply pressure increasing as several maintenance units resumed operations and newly added capacities entered the market.
• Demand remaining soft:
  • Packaging film demand rose briefly due to e-commerce festivities but declined after pre-holiday stocking.
  • Agricultural film demand dropped as the peak season ended.
  • Downstream converters followed a wait-and-watch approach, limiting purchases to essentials.
• Increased availability of imported cargo is adding to inventory pressure.
• With crude oil showing limited price volatility, sentiment in the PE market remains cautious.

Overall, PE continues to show weak performance with no strong catalysts to drive prices upward.

Market News: Producers Cut Offers as Global Oversupply Weighs on PE Prices

• RIL announced Price Protection on PE effective 26th Nov to 3rd Dec 2025 (valid until 06:00 hrs, 4th Dec).
  Incentive on HD/LL grades for Nov 2025:
  • X: ₹2,000/MT
  • Y: ₹2,500/MT
• RIL rolled over PVC prices with no change effective 27th Nov 2025.
• Hanwha (South Korea) offered PVC P1000 at US$ 660/MT CIF to Nhava Sheva, Chennai, and Mundra for Dec 2025 shipment (LC at sight).
• Westlake Chemical, USA confirmed full operational capacity at its 795,000 tpy VCM plant after a fire incident on 25th Nov 2025.
• Lotte Chemical (South Korea) to shut down its 1.1 MMt/y Daesan naphtha cracker amid global oversupply and restructuring under HD Hyundai.
• Two major Saudi suppliers have again reduced December PE offers, raising speculation that the market may be nearing a bottom.
• Wanhua Petrochemical (China) restarted its 250,000 tpy LDPE unit in Yantai after scheduled maintenance.

Market Expectation: Bearish Outlook Continues with Limited Upside for PE Prices

The near-term outlook for the PE market remains bearish:

• Supply pressure is expected to remain elevated due to returning capacities and steady imports.
• Demand is likely to stay subdued as key downstream industries operate cautiously.
• Weak sentiment and continuous price reductions from global producers may keep prices under pressure.
• With crude oil fluctuations having minimal influence, the market is expected to continue weak-to-steady, with limited chances of immediate recovery.

Unless demand strengthens or supply tightens in December, the PE market will likely maintain a soft and uncertain trajectory.