Global HDPE Prices Showcase a Firmer Trend With Signs of Destocking Among the Enterprises

Rotterdam, Netherlands- Major Polyolefin producers have approached the European market with a firm price trend for November 2022. They have cited brisk demand from the European markets, which remains the main reason behind their pricing policy, although inventories for High-Density Polyethylene (HDPE) cargoes remain adequate to fulfill the end-user industries' requirements. HDPE prices gained a stance with increased purchasing activities and continuous utilization of existing inventories from downstream ventures.

HDPE prices have risen due to the strong regional demand for European cargoes and the increasing bidding for new stocks. There is additional room for price increment with revision in the price trend for the global Polyolefin market. This week, the price of High-Density Polyethylene (HDPE) in Germany surged to USD 1340/tonne (Raffia Grade) FD Hamburg. Still, the HDPE prices are on the lower end, and the major manufacturers have cut the production rate of their Polyolefin manufacturing units. Feedstock Ethylene prices also showcased a bullish trend supported by high Naphtha and crude prices in the European region.

In the USA, HDPE prices remain stable compared with the previous week due to improved trading activities, slightly better demand, and firm feedstock Ethylene prices. This week, the cost of High-Density Polyethylene (HDPE) stabilized at USD 1430/tonne (Injection Moulding) FOB Texas. As global economic uncertainty is plenty in play, buyers are taking a cautious approach to trade Polyolefin, which could affect HDPE prices in the next few weeks. Tightening supplies are weighing on buyers as an effect of improving market fundamentals.

As per ChemAnalyst, the High-Density Polyethylene (HDPE) market will remain steady, and production cutbacks will prevail due to sufficient product availability. The demand for HDPE from downstream Plastic and food packaging industries will remain to soften along with cautiously operating ventures. However, energy and utility costs will remain a concern in Europe and the US, which can disrupt the supply/demand scenario in the global market.