Morning Briefing - 13 August 2026

Chinese Buyers Re-emerge, Breathing Life Into LLDPE Film Demand

Amid renewed shipping disruptions in the Middle East, production outages in Russia and preparations for the upcoming manufacturing season, Chinese buyers have cautiously returned to the domestic market to replenish inventories, driving a noticeable improvement in transaction activity this week, particularly for LLDPE film.

While the initial signs point to a firmer market, participants cautioned against reading too much into the recovery, with expectations mounting that a sizeable volume of previously purchased US-origin cargoes will arrive in China in September. The influx could weigh on market sentiment and limit the sustainability of the recent demand revival.

Still, the tightening domestic market could have wider regional implications. At least one major Chinese producer said it had significantly reduced its LLDPE export allocations following stronger-than-expected domestic sales, potentially limiting availability for overseas buyers and adding another layer of support to the broader regional market.

Margin Over Market Share: Taiwanese major raises September PVC offers despite Chinese competition

A major Taiwanese PVC producer has reportedly lifted its September shipment offers to Asia by $20/ton from August, drawing support from firm upstream costs and limited supply availability.

The higher offers, however, met with mixed market responses. While the producer reportedly sold out its allocation to India, market participants attributed the strong sales largely to the smaller-than-usual volumes made available, rather than broad-based acceptance of the higher price levels.

In Southeast Asia, meanwhile, buyers continued to favour more competitively priced Chinese PVC cargoes, highlighting the growing price resistance in the region. The Taiwanese producer nevertheless appeared unfazed by the competition, choosing to defend production margins rather than chase volume through more aggressive pricing.