A primary concern for Southeast Asian buyers is the future of intra-regional shipping costs. With reduced demand for frontloading from US importers—due to the upcoming January ILA strike deadline and potential tariff increases—ocean freight rates are expected to decrease further.
The gains on the Dalian Commodity Exchange encouraged spot suppliers to adopt a more confident stance, testing a stable to firmer trend. However, market sentiment remained mixed. While buying interest in the LLDPE sector was buoyed by seasonal demand
According to market sources, this reduction stems from a strategic shift toward prioritizing offline sales to converters, allowing the producer to secure better profit margins. Additionally, Shenhua is reportedly withholding stock in anticipation of price increases in the near term.
Apparently, finished goods demand remains stagnant. Converters, especially in the woven bag industry, reportedly hold inventories sufficient for 30 to 60 days, curbing immediate buying interest. Locally sourced Malaysian homo-PP yarn continues to dominate the domestic market, eroding demand for imports.