SINGAPORE (ICIS)-- China’s polyethylene (PE) producers are increasingly exploring Southeast Asia (SEA) as an export destination as domestic market fundamentals shift and pressure builds at home.

China has traditionally not been a net exporter of PE, but weakening domestic demand and limited ability to clear material domestically are prompting producers to look overseas, with SEA increasingly viewed as a potential growth market.

Polypropylene (PP) producers in China and SEA are facing similar challenges, struggling to pass on higher costs as end users have so far resisted price increases in April. While some market participants expect greater acceptance of higher prices from June onwards, converters are considering run rate reductions if margin pressure persists.

In this podcast, Senior Editors Izham Ahmad and Jackie Wong discuss evolving supply‑side strategies, demand conditions following an earlier wave of panic buying, and expectations for potential demand easing in the near term.

• Depleting inventories by end‑May may mark a turning point for demand recovery
• Shipping constraints and geopolitical risks sharpen focus on shorter‑haul, lower‑risk cargoes
• Downstream uptake slows after panic buying, market players flag potential demand easing