Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Intensified US-Iran military actions disrupt oil shipments through the Strait of Hormuz, causing a sharp spike in crude oil prices. The price jump leads to severe depreciation of the Indian rupee, raising import costs and inflationary concerns.
In the second half of 2025, LDPE (1005FY20) prices followed a mostly stable trend with mild downward pressure. The market was well supplied, as new polyethylene capacities came online and producers in several regions increased operating rates. This rise in supply prevented any strong price recovery, even though some earlier supply cuts had been made due to weak margins. Demand from industrial sectors remained cautious, which further restrained price movement.
Packaging demand provided steady support, especially from food packaging, e-commerce, and FMCG sectors. However, this support was not strong enough to push prices higher, as buyers increasingly shifted toward recycled materials and blended products. The growing focus on recyclable and sustainable packaging reduced reliance on virgin LDPE, keeping demand growth moderate. Feedstock availability remained comfortable, which also eased production costs and added to the overall price stability.
In Europe, LDPE prices moved within a narrow range as supply chains operated smoothly and imports arrived without disruption. In Asia, higher regional production and the restart of previously idle plants added pressure to the market, making exports more competitive and limiting price increases. Overall, LDPE prices in H2’25 exhibited softness, reflecting balanced supply conditions and steady yet weak demand.
Analyst Insight
According to Procurement Resource, LDPE prices are expected to remain stable, with only limited movement unless demand strengthens or supply tightens unexpectedly.
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In the first half of 2025, LDPE (1005FY20) prices displayed a fluctuating trajectory across Asian markets, with China setting the tone for regional sentiment. The quarter began with a gradual decline as high inventories, weak downstream orders, and limited restocking activity weighed on buying interest. The market saw further pressure from cautious procurement behaviour, particularly in packaging and film segments, where demand softened after the seasonal peak.
A short-lived recovery emerged when tighter import flows and supply adjustments temporarily lifted sentiment. This period of stability, however, quickly gave way to another decline as end-user demand remained subdued and overall consumption lagged. The prolonged weakness in downstream sectors encouraged traders to offer discounts, adding further pressure on spot values.
By mid-year, the trend shifted again, with logistical constraints and improved procurement from industrial buyers supporting an upswing. Increased activity in domestic distribution networks, coupled with cost-side support from upstream movements, provided momentum for prices to rise. The rebound was sustained for a short phase before easing back toward the end of the period, when downstream demand showed signs of tapering and speculative buying subsided.
LDPE 1005FY20 is a specialized grade of low-density polyethylene (LDPE) renowned for its unique properties tailored for liquid packaging applications. Engineered with additives to enhance surface slip and ensure smooth film flow, it exhibits exceptional impact resistance and heat sealing capabilities. Processable via coextrusion techniques, this LDPE variant finds extensive utility in both mono and co-extruded film formulations.
(CH2-CH2)n–
Packaging, Agriculture Equipment, Textiles, Consumer Goods, Electricals, Construction
Plastic film, LDPE film
Reliance Industries Limited., Dow, Chevron Phillips Chemical Company, LyondellBasell Industries Holdings B.V, Exxon Mobil Corporation, LG Chem
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
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This report provides the cost structure of LDPE by the polymerization process. In this process, ethylene is cooled, compressed, and converted into polyethylene in a reaction vessel at 320 degree centigrade.
This report provides the cost structure of LLDPE by the copolymerization process. The process involves polymerization via two techniques: solution polymerization and gas-phase polymerization.
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