While repeated indications from the incoming US administration to impose hefty duties on Chinese goods may directly impact finished products, market participants are also closely monitoring regulatory changes in key importing countries of Chinese PP, namely Brazil, India, and Indonesia.
Despite weaker performance in the futures market, domestic spot LLDPE film offers remained firm, buoyed by limited spot supply. However, this confidence was insufficient to prompt significant procurements, as lingering uncertainties clouded the outlook for January.
In a positive development, auction allocations have significantly increased, a change that market sources view as a welcome relief. This improved allocation is expected to provide some easing of the current tightness in spot cargoes, though challenges remain.
The challenge facing regional suppliers, who aim to attract buying interest in this market, is to overcome the aggressive localised Malaysian cargoes. These parcels, often offered through forward-selling, tend to disrupt the market with highly competitive pricing.
Following a slump in October, the LLDPE film market experienced a sharp rebound, driven by robust demand from agricultural film and packaging sectors. Export orders surged as US importers stockpiled ahead of potential port worker strikes and import tariff hikes, boosting demand for industrial packaging.
Following the January price announcement earlier this week, a major Saudi Arabian producer set final prices with a minor discount of $10/ton discount on HDPE and LDPE film while offering limited space for negotiation on LLDPE film.
On 24 December, the Indian government officially announced a six-month postponement of the QCO for PVC under the Bureau of Indian Standards (BIS) mandate. However, this delay provided limited immediate relief.