Asian Polyethylene: Mixed as tight supply meets weak demand / Chinese domestic prices correct downward / Weak converter margins restrict buying activity / Preholiday caution slows China trading

Asian polyethylene markets were mixed in the week to Sept. 23, with elevated feedstock and freight costs supporting producer offers while weak downstream margins continued to restrict buying across China and Southeast Asia. Regional availability of high-density polyethylene and linear low-density polyethylene remained tight amid plant turnarounds, production disruptions and delays to Middle Eastern shipments. However, most converters resisted building inventories because of limited orders for finished goods, leaving the broader market in a standoff between firm replacement costs and subdued consumption. In China's domestic markets, prices underwent a downward correction as soft futures and cautious preholiday procurement outweighed support from feedstock costs. Downstream demand nevertheless remained weaker than typically expected during China’s “Golden September” manufacturing season. Converters pushed back against elevated resin prices and confined purchases to small lots...