Morning Briefing - 14 August 2026

Price versus proximity: Southeast Asian LLDPE film market takes divergent paths

The Southeast Asian LLDPE film market diverged towards the end of the week, with deep-sea US-origin cargoes edging lower as lengthy lead times reduced their appeal to cautious buyers, while nearby parcels continued to command firmer levels. The widening gap reflects growing buyer sensitivity to the price and supply risks associated with long-haul shipments, keeping overall trading activity subdued.

Meanwhile, suppliers from China and the Middle East have maintained a firm pricing stance, showing limited willingness to accommodate buyer resistance. A Saudi Arabian producer was heard offering September-shipment LLDPE film at levels above $1,200/ton, citing tight availability and elevated freight costs.

The contrasting price trends underscore the increasing importance of delivery timing in the regional market, as buyers balance cheaper deep-sea cargoes against the greater uncertainty associated with longer lead times.

Upstream Support Cracks, Sending Asian Ethylene Into Sudden Retreat

The Asian ethylene market came under renewed pressure on Thursday, 13 August 2026, as spot indications plunged by $30–35/ton day-on-day despite constrained regional supply. The sharp correction underscored the growing influence of upstream economics, with softer naphtha values weakening producers’ pricing leverage even as reduced cracker operating rates kept physical availability relatively tight.

Nevertheless, market participants saw limited room for a deeper correction. Producers remained reluctant to allow ethylene values to fall significantly below naphtha-linked levels, as maintaining margins has become increasingly critical amid subdued downstream demand and volatile feedstock costs.