Morning Briefing - 10 August 2026

The Chinese PVC market extended its downtrend into a third consecutive week as sluggish domestic and export demand, coupled with volatility in the upstream energy complex, continued to weigh on sentiment. However, sellers limited discounts to around CNY 50/ton, supported by ongoing production discipline and persistently negative production margins.

Market participants expect the prevailing conditions to persist into the coming week, with regional buyers remaining cautious on fresh purchases while awaiting greater clarity over US–Iran negotiations on reopening the Strait of Hormuz. Even so, ongoing shutdowns at major PVC facilities across China are expected to prevent any significant price correction in the near term.

Supply returns, confidence doesn't in Malaysia's LDPE market

Malaysia's LDPE film market is set to receive modest supply relief in the coming week as at least one major domestic producer prepares to resume operations following an unplanned shutdown. Although August prices have been finalised, buying interest remained muted, with many converters hesitant to commit amid lingering concerns over the reliability of domestic supply.

As reported earlier, Malaysia has traditionally been one of Southeast Asia's largest net exporters of petrochemicals. However, a series of unplanned production disruptions in recent years has eroded buyers' confidence in local supply reliability, prompting many downstream processors to diversify their procurement and increasingly turn to imports to secure more dependable feedstock availability.