Morning Briefing - 12 August 2026

Supply Strikes Back: Chinese homo-PP export prices rise despite weak overseas demand

China’s homo-PP export offers ticked higher this week, supported by a rallying upstream energy complex and continued production discipline among domestic producers, which has freed sellers from immediate inventory pressure. However, the upside remained capped by lingering demand weakness across the region.

According to market sources, the Asian PP market is now locked in a waiting game between reluctant buyers and equally adamant sellers – a standoff that is expected to persist in the near term. Neither side appears willing to overreact to volatile crude oil prices or the barrage of headlines surrounding escalating tensions in the Middle East.

“It is very much supply-focused for Chinese suppliers now,” a market source commented. “Most plants are running at reduced rates. Coupled with the strong production cost outlook, all petchem plants are putting more effort into protecting margins rather than chasing volumes.”

Profit Before Supply: Vietnamese traders cash in on LLDPE Film

Over the past several weeks, Vietnamese trading houses have intermittently trimmed selling prices for localised LLDPE film cargoes to stimulate sales. The profit-taking has become more pronounced this week as a growing volume of previously purchased cargoes is scheduled to arrive in the local market.

According to market sources, a couple of traders have begun offering localised Saudi-origin LLDPE film at substantial discounts to prevailing market levels, despite the cargoes being at least one to two weeks away from arrival. Lingering geopolitical uncertainty, alongside elevated bank interest rates and warehousing costs, has prompted traders to move inventory ahead of time.

Market participants warned that the aggressive price-cutting could weigh on local trading sentiment, even as import LLDPE film prices remain firm.