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LDPE And LLDPE Outperformed By HDPE In Global Markets

Even though PE hikes were capped or slightly discounted due to a lack of demand support in major PE markets during March, HDPE managed better compared to other grades all over the board, backed by improved demand and restricted supply.

Prices Of HDPE Film Followed An Improved Trend In Comparison To Other Grades In China

For the last two weeks, prices of HDPE film followed a mainly steady trend in China for the second week, whilst the LDPE and LLDPE film grades were slumping.

A weaker-than-anticipated recovery in demand is noted as the primary factor that led to the downward pressure on spot prices. The abrupt decline in prices of crude oil, along with an aggravating banking crisis, weakened the market sentiment as well. Regarding the present supply constraints from the Middle East amidst the turnaround season in the area, a few of the traders have ascribed the improved performance of HDPE film to a rather tighter availability.

This week, prices of Middle East-origin HDPE film have stayed steady at USD 980-1020/ton CIF China, cash basis. The cost of LDPE and LLDPE film of the same origin has withdrawn more by USD 10-20/ton in the meantime.

In Europe, Tight Import Supply Helps Major HDPE Hikes

Likewise, HDPE grades managed better in contrast to Europe's other PE grades as a consequence of the unattainable availability of imports. Shutdowns in the Middle East and following delays in shipment restrained HDPE grades export volumes, in addition to European distributors' restricted import movements from the US.

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Recently traders have been in consecutive business because of long lead durations and an unpromising demand outlook in Europe. This means HDPE grades were slightly tighter than LDPE and mLLDPE. LLDPE had better performance because of low import quotas as well.

This gave regional producers some leverage to aim for better price rise on HDPE grades, whilst a few suppliers kept lower budgets for HDPE inj., specifically film and b/m. March PE deals were mainly concluded with rollovers to rise to €30/ton, aligning with the total ethylene hike, whilst HDPE grades traded with more significant gains accounting for €50/ton this month.

HDPE’s Premium Above LDPE, LLDPE Broadens In Türkiye

Türkiye’s PE markets opened in March with the latest spikes trailing long cutbacks from Middle Eastern and Russian producers, in addition to restricted supply for US origins. However, the total demand was below expectation whilst local producers, like a Saudi Arabian major, were compelled to cut their previously hiked targets to bolster sales.

Even though the sentiment relaxed recently, and April expectations are presently reaching out for discounts on all product deals, HDPE film registered more observable gains compared to other PE grades during March. On a monthly average, Middle Eastern offers raised by USD 10/ton for LDPE and LLDPE film, as per data. However, HDPE film earned USD 30/ton owing to better and more supportive dynamics.

As per many players, queries for HDPE b/m (large container) were strong amidst high demand for products like detergents, toys, and large barrels as a result of the shocking earthquakes that shook southeast Türkiye a month ago. Additionally, tight prompt availability for this grade added to the scenario.

At present, Middle Eastern HDPE film is trading lower than LDPE film by USD 20/ton based on a weekly average in contrast to USD 60/ton last month. HDPE film holds a premium of more than USD 40/ton over LLDPE C4 film after these products got traded at par a month ago.

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According to this article by Procurement Resource, HDPE outperformed LDPE And LLDPE globally despite weak demand. The market sentiment was weakened by factors like an abrupt decline in the prices of crude oil and an aggravating banking crisis. The same trend followed in the European market as a result of the unattainable availability of imports.

Similarly, the queries for HDPE b/m (large container) remained firm on the back of increased demand for products like detergents, toys, and large barrels, presumably due to the latest earthquakes in the region that left a devasting impact on the country.