On November 7, 2025, Brazilian Low Density Polyethylene (LDPE) import prices fell by 2.83%, due to oversupply from primary producers in the USA, China, and Colombia.
In early November 2025, the demand for LDPE in Brazil's packaging and fast-moving consumer goods (FMCG) sectors lessened, primarily due to decreased demand in the flexible film markets for frozen food bags and snack pouches. The 2.83% decline in LDPE prices was acknowledged by oversupply. In addition, updates released by ANVISA on November 4, emptied consumer fears over food labelling and sanitizing requirements, eliciting a heightened need for compliant mono-polyethylene (mono-PE) recycled solutions.
The demand for mono-PE films (LDPE & HDPE) in packaging formats noted considerable integration of recycled content, especially due to brands pursuing new mandates of a circular economy. The basic extrusion needs for high-barrier overwraps, and for inner liners, were also rapidly shifting in demand. The downstream production of the FMCG extrusion sector aided volume capacity due to increased urbanization and e-commerce demand. The supply metrics for LDPE in Brazil during early November continued to provide an abundant supply, while transport logistics via the port of Santos were without interruptions, due to urbanization and e-commerce demand. Over 80% of the import volume originated from reliable supply - namely, the USA, China, and Colombia. The updates from ANVISA on November 4, particularly as the changes pertained to labelling and sanitizing requirements congruent with Mercosur standards, drove increased investments directed towards food contact film extrusions, respectively. There have been some shifts in sustainability with regards to mono-PE structures in food contact films, which is expected to lessen the volume of virgin LDPE imports. Supply dynamics improved logistics via reliable port metrics, prescriptive future directed supply chains toward flexible packaging as well as rigid applications, although providing supply metrics to incur sustained consumer needs.
ChemAnalyst anticipate that, the ongoing oversupply of LDPE in Brazil may fluctuate market until late November. Regulatory proposals align with Brazil's inherent sustainability trends that may support demand for recyclable packaging despite oversupply market conditions of LDPE. Smooth port operation is anticipated around the Santos port, although careful monitoring of ANVISA proposed implementations and recycled content use may be prudent. LDPE's inherent applications for FMCG and e-commerce more than stocks residues and may allow for limited price stabilization.
