Global HDPE Trading Fundamentals Slump With Weak Buying Activities and Declining Spot Prices
Global HDPE Trading Fundamentals Slump With Weak Buying Activities and Declining Spot Prices

Global HDPE Trading Fundamentals Slump With Weak Buying Activities and Declining Spot Prices

  • 01-Feb-2023 5:56 PM
  • Journalist: Robert Hume

Hamburg, Germany- Global High-Density Polyethylene (HDPE) producers remain skeptical about raising their offers due to a slump in demand and adequate product inventories. There were limited offers of HDPE from the downstream enterprises, with the supply exceeding the demand. Lower netbacks, declining feedstock Ethylene prices, and weak spot purchasing remain the key factors for weak market fundamentals.

With the week ending on 27th January 2023, the price of HDPE in Germany slipped to USD 1400/ton (Raffia Grade) FD Hamburg with a weekly decline of 3.44%. Regional players have been wrapping up their January HDPE deals mostly with reductions, an attempt to reduce their existing inventories. With lower energy prices and weak downstream markets, players discuss whether suppliers can sustain their offers in February. A limited number of export offers showed up, in sync with the regional bearish trend and delivery delays. Regarding utility costs, falling gas and electricity prices keep players cautious in Europe, with declining production costs among enterprises.

In the USA, the HDPE prices showcased a stable price trend with USD 1256/ton (Film Grade) FOB Texas. The spot markets continued to operate stably, and the trade volume declined due to oversupplies. There was some rejuvenated demand, for HDPE, following severe weather and tornados in the greater Houston area, which impacted some Polyolefin Petrochemical complexes. Downstream Plastic and food packaging industries are also affected by weak purchasing activities resulting in weak profit margins and revenue. The trading activities were held immediately with slow market offtakes in the region.

According to ChemAnalyst, the demand for HDPE in the European market is anticipated to remain bearish due to oversupplies and weak spot discussions in the forthcoming weeks. In terms of the feedstock market, the spread between Ethylene and HDPE will shrink, affecting the venture's profit margin and sales. In the US, prices will follow a steady price trend with trading activities on a need-to basis. Downstream plastic industries will decrease their prices of final products to consume their stocks.

Related News

Global HDPE Market Faces Downturn in April 2024 Amid Oversupply Conditions
  • 16-Apr-2024 5:26 PM
  • Journalist: Xiang Hong
AmeriTex Pipe & Products Announces Entry into Corrugated Plastic Pipe Market
  • 11-Apr-2024 12:50 PM
  • Journalist: Timothy Greene
UPM Raflatac Earns RecyClass Approval for UV Adhesive PE Films
  • 28-Mar-2024 11:06 AM
  • Journalist: Bob Duffler
HDPE Price Rises as US Market Recovers Amidst Global Challenges
  • 19-Mar-2024 5:17 PM
  • Journalist: Francis Stokes