- HDPE (F46003) prices entered Q2 2026 at elevated levels but moved downward as supply normalized and buyer resistance increased.
- High naphtha and ethylene costs supported early-quarter values, while easing crude and olefin costs later removed a major layer of price support.
- Film, packaging and converter demand weakened through May and June, with buyers reducing purchases and consuming previously accumulated inventories.
During Q2'26, HDPE (F46003) prices in Asia followed a downward trend after an early-quarter increase. The market entered April with strong cost and supply pressure following disruptions to Middle Eastern polymer and naphtha shipments. Reduced feedstock availability lifted ethylene production costs, while refinery and petrochemical maintenance tightened regional HDPE supply and encouraged buyers to secure replacement volumes. However, this strength proved difficult to sustain. As logistics improved, plants restarted and imported resin returned to the market, supply availability increased. At the same time, weaker crude and naphtha conditions pulled ethylene costs sharply lower, reducing production-cost support for HDPE. Demand also weakened as film, packaging and other converters cut operating rates and limited fresh purchases. Earlier panic buying had left many participants holding expensive inventories, causing procurement to shift toward immediate requirements rather than restocking. Increasing domestic production and alternative Asian supply further reduced concerns over shortages and pressured supplier offers through the latter part of the quarter.
Analyst Insight
According to Procurement Resource, HDPE (F46003) prices are expected to remain soft to broadly stable as improved supply and weak converter demand offset any renewed feedstock volatility.