Ample Supply and Weak Buying Pull Saudi LDPE Film Prices Down 1.06%

Ample Supply and Weak Buying Pull Saudi LDPE Film Prices Down 1.06%

Aleksandr Pushkin 05-Jan-2026

In December 2025, Saudi Arabia Low Density Polyethylene (LDPE) Film Grade FOB Al Jubail market continued its bearish trajectory, down by 1.05% in the third week, 1.06 % in the fourth week and 1.08 % in the fifth week, continuing a severe 12-weeks bearish trend. Stable domestic production plant runs remained steady, covering 88% of demand and stable feedstock supplies continued to support oversupply, while the substitution of converters toward LLDPE/EVA for tensile strength and thinner films, and just-in-time inventories, limited demand. Government restrictions on single-use plastics, reiterated January 2, intensified demand erosion. Robust packaging, ag mulch, e-commerce film, wire-and-cable sheath for Neom and year-end retail festivals provided a counterweight and offset some of the declines but could not reverse the tide.

In December xxxx, demand for LDPE film grade in Saudi Arabia dropped sharply as converters made growing substitutions with LLDPE due to its better tensile strength and EVA supported by high-speed extruders that permitted the manufacture of thinner films and reduction in the total consumption. LDPE spot buying was also weak because of just-in-time stockpiling and wary purchasing amid softer export orders, compounded by government restrictions on single-use plastics reiterated on January x. Nonetheless, strong demand remained in key end use markets such as yearend, retail packaging, agri-mulch films, e-commerce packaging, and infrastructure application like wire-and-cable sheathing for projects such as Neom, led volumes inched up but couldn’t offset the overall downtrend. LDPE supplies remained abundant and with adequate feedstock and catalyst supplies, the production cost declined. The producers tried to make consumer greedy in favour to buy more LDPE supplies and destock the accumulated piles. Exports made neutral...

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