Southeast Asian PE Market Faces Weak Demand Despite Cost Support from Rising Crude Oil Prices

Key Highlights

1. Asian PE prices dipped 0.05–0.81% week-on-week across all major grades.
2. U.S. Gulf Coast prices remained unchanged at $740–915/ton across categories. 
3. Regional PE output loss reached 95,500 tons due to planned maintenance. 
4. Crude oil’s 2% rise offered slight cost support, but demand stayed muted.

PE Market Stable Amid Marginal Price Corrections Across Regions

The polyethylene (PE) market reflected steady trends through the third week of October, with only minor adjustments seen in Asian and U.S. benchmarks.

In China, according to SunSirs, average prices between October 17–23, 2025 recorded marginal declines:

Meanwhile, in the U.S. Gulf (Houston) market, polyethylene prices remained unchanged (NC) across all grades, suggesting stable regional demand and supply conditions:

Overall, the global PE market continues to hover in a narrow range, supported by steady crude oil prices and limited short-term demand recovery. While Asian prices showed minor softening, U.S. markets maintained stability, indicating balanced fundamentals as markets move into late Q4.

Demand & Supply: Limited Demand, 95,500-Ton Output Loss Keep Market Balanced

• The Southeast Asian LLDPE film market saw a marginal decline during the week, with US-origin cargoes continuing to dominate the lower price range. 
• In Indonesia, prices fell by $10/ton, while Malaysian buyers observed a sharper $20/ton drop. Although the pace of decline has slowed, market activity remains limited as most converters delay fresh purchases amid uncertain short-term demand.
• On the supply side, domestic PE production continues to expand, while scheduled maintenance during October 17–23 led to a temporary production loss of around 95,500 tons, slightly lower than the previous week. 
• Agricultural film operating rates have improved, but demand recovery remains below expectations, forcing producers and traders to lower prices to manage inventories.

Market News: Crude Gains 2%, Oversupply Caps PE Price Recovery

• At the start of the week, major Saudi Arabian producers announced November shipment offers, setting the tone for a cautious market. 
• Meanwhile, LyondellBasell raised export offers from the US, and easing US-China trade tensions are expected to keep Chinese buying interest stable in the near term.
• Internationally, crude oil futures rose more than 2% on October 22, providing some cost-side support to PE prices. 
• However, both high-density and low-density PE segments remained weak, overshadowed by a steady supply outlook and restrained downstream demand.

Market Expectation 

The PE market is likely to stay weak in the near term. While cost support from crude oil and a possible seasonal uptick in greenhouse film demand could lend partial stability, rising supply may outpace demand growth. Traders expect the market to hover near a price floor, with limited room for recovery until clearer signs of demand revival emerge post-festive period.