Morning Briefing - 18 August 2026

Saudi LLDPE film rockets $200+/ton in SEA, triggering buyer resistance

A key Saudi Arabian producer reportedly opened September LLDPE film offers to Malaysia and Vietnam at the start of the week, with increases of more than $200/ton from its initial price list issued last month. The sharp hike was attributed to tightening availability and escalating shipping challenges.

Market response, however, was subdued, with regional buyers resisting the steep price increases amid concerns over the additional cost exposure. The producer has also introduced new contract terms stipulating that any unforeseen shipping surcharges, demurrage and container storage fees arising from disruptions to Red Sea transit will be borne entirely by the buyer.

The combination of elevated prices and increased freight-related risks has made the offers less attractive to buyers, particularly as uncertainty over shipping costs complicates purchasing decisions.

China homo-PP jumps on futures surge, demand stays sidelined

The Chinese homo-PP market opened the week on a firm note, with spot offers rising by as much as CNY 100/ton from the previous session. The gains were primarily driven by a sharp rebound in major PP futures contracts on the Dalian Commodity Exchange, which responded to a broader recovery in energy markets and a weaker US dollar.

Physical market demand, however, failed to keep pace with the futures-led rally. Chinese buyers had already been slowing their replenishment activities over the past week, and the latest round of price increases prompted many to remain on the sidelines.

Market participants were increasingly questioning the sustainability of the rally in the absence of meaningful demand support. While stronger futures and energy markets have provided sellers with greater pricing leverage, sustained gains in the spot market may prove difficult unless downstream buying interest begins to improve.