Despite steady purchasing activity from Chinese converters in the agricultural film sector over recent weeks, there is little appetite for large-scale stockpiling. The upcoming week will prove pivotal in determining whether local producers can successfully deplete their inventories ahead of the weeklong holiday.
The focus of the Southeast Asian PE market remained on the widespread tightness of LLDPE film, particularly MI 2 grade, and the loosening availability of LDPE film. Trading sentiment remained tepid as sources awaited new offers from key regional and international suppliers.
In contrast to the sluggish sentiment in the PP market, China's PE sector showed signs of stability, with steady buying activity for LLDPE and LDPE film as the week began. While LLDPE film saw a slight discount of CNY 50/ton, buyers accepted a similar price increase for LDPE film.
Vietnamese customers, meanwhile, are treading cautiously, keeping an eye on the US Federal Reserve’s decision on potential interest rate adjustments. Any change could have broad implications for currency exchange rates, energy prices, and raw material costs, leaving market participants divided on the near-term outlook.