Global HDPE Market Takes Support from Improved Demand and Unhindered Trade Activities
- 08-Dec-2022 4:47 PM
- Journalist: Nicholas Seifield
Hamburg, Germany- The trading activities related to HDPE started to pick up the stance with oscillations in feedstock Ethylene prices. In the European market, the price of HDPE climbed sharply with improved market trading fundamentals. Supply shortages, energy costs, and logistics bottlenecks remained the main price drivers. Meanwhile, the energy and utility costs are still on the higher end, which further rattled the regional polymer market.
The supply situation remains firm with the consumption of cargoes as per the downstream requirement. Continuous utilization of HDPE inventories and accelerating trading activities boosted the price, and, on 2nd Dec, the cost of HDPE in Germany surged to USD 1590/ton (Raffia Grade) (FD Hamburg).
In Europe, HDPE demand from the downstream plastic and food packaging industries remain lukewarm, with higher product bidding. Due to high trading and limited product availability, HDPE gained a dominant position in the Polyolefin market.
The price of HDPE stabilized in the USA after the unprecedented fall over the past few weeks. Profit margins remain under pressure, affected by lower enterprise sales and revenue. PE producers are successfully working to down inventory levels by the year's end. Transportation remains a concern in the region with congested railroads, with railyards in the Midwest and Texas, which are not expected to clear until the end of this year. HDPE remained quite active heading into December, with a healthy volume of resin and strong market fundamentals
According to ChemAnalyst, the price of HDPE will remain stable in the forthcoming weeks, with trading as per the requirement from the end-user industries. The fluctuation in the HDPE market will depend on feedstock Ethylene behavior and the product consumption from the downstream market. Downstream plastic and food packaging industries will operate cautiously per the end user's requirement. With the new year approaching, trading of HDPE will flow in the global market with higher bidding for the new stocks.