Despite the weakening of ethylene feedstock values, prices for Linear Low Density Polyethylene (LLDPE) have remained stable in Asia throughout this week.

In Far East Asia, LLDPE prices were assessed in the range of USD 960-980 per metric ton CFR (Cost and Freight) levels, showing no change compared to the previous week. Regional demand has weakened due to the depreciation of the Chinese yuan against the US dollar.

In Southeast Asia, LLDPE prices remained stable at the USD 980-1010 per metric ton CFR levels, with buyers opting to stay on the sidelines and avoiding negotiations, despite overseas producers raising their offers. Typically, late August or early September marks the beginning of the peak demand season, but there hasn't been a noticeable uptick in demand this year.

In India, LLDPE prices were assessed at the USD 1010-1030 per metric ton CFR levels, remaining unchanged from the previous week. As the deadline for the implementation of the Bureau of Indian Standard (BIS) guidelines specifying PE imports approaches, the domestic market has witnessed a significant slowdown in demand. Domestic market participants are adopting a wait-and-watch approach and refraining from active business transactions as they seek clarity from the government regarding a specific timeline for implementing the BIS quality control regulations, which are expected to take effect on October 3, 2023.

Weak demand sentiments in the domestic market prompted one of the local producers to announce a discount scheme in HDPE and LLDPE grades. Meanwhile, a few Indian traders raised concerns that an Iranian supplier failed to honor the terms of a deal even after an advance payment had been made. Additionally, Reliance Industries Ltd (RIL) is likely to shut down its low-density polyethylene (LDPE) and linear low-density polyethylene (LLDPE) plants in Jamnagar. The company has tentatively scheduled a maintenance turnaround for the LDPE and LLDPE plants toward the end of September 2023. The turnaround is expected to last around 30-35 days. Located in Jamnagar, Gujarat, India, the LDPE plant has an annual production capacity of 500,000 metric tons, while the LLDPE plant has an annual production capacity of 650,000 metric tons.”

In Pakistan, LLDPE prices were assessed at the USD 1040-1070 per metric ton CFR levels, showing no change from the previous week. The buying sentiment has cooled down, with sellers reluctant to engage in transactions due to difficulties in securing Letters of Credit (LCs). Rising fuel prices and soaring power rates have added further stress to local converters, who are already grappling with economic challenges.

In Sri Lanka, LLDPE prices were assessed at the USD 1040-1080 per metric ton levels, remaining unchanged week on week. Buyers continue to face obstacles in securing LCs as the country grapples with a shortage of US dollars. However, there have been reports of local traders making a few purchases through TT (Telegraphic Transfer) payments.

In Bangladesh, LLDPE prices were assessed at the USD 1040-1070 per metric ton levels, showing no change from the previous week. Buyers in Bangladesh are encountering difficulties in securing LCs, as the country's US dollar currency reserves have seen a marginal decline.