Global mLLDPE Prices Experience Diminish Trend Amid Sluggish Demand

Metallocene Linear-low Density Polyethylene (mLLDPE) market experienced a downshift in July globally amid lackluster demand from the downstream sectors. There was an abundant amount of mLLDPE accessible to fulfill the demand, even though producers upheld production restrictions to attain a more favorable market equilibrium. The accumulation of producer inventories and abundant imported resources can clarify this. Further, inflation and increased interest rates have impacted consumer sentiments.

In the European market, the lackluster demand for mLLDPE has continued throughout the summer, typically when sales in seasonal downstream markets like beverages and construction usually experience an upswing. Across most end sectors of mLLDPE, demand remains sluggish primarily due to the economic challenges impacting many European nations and the significant stockpiles held by processors. Additionally, processors procured just the necessary amount of material to satisfy their current production requirements, leading to the price decline of mLLDPE in July. The market equilibrium is unfavorable due to decreased order placements caused by reduced seasonal demand as Europeans go on vacation. To counter this reduced demand, producers have upheld their output controls.

The US market for mLLDPE has been bearish amid the current market dynamics and persistent inflation. Further, the hurricane season has also impacted the market, causing disruptions in the supply chain. mLLDPE downstream construction market has been low, causing the prices to decline. Furthermore, the feedstock Ethylene prices have followed a downward trend, thus impacting the mLLDPE prices.

Asian market also showed declining price movement of mLLDPE in July as the demand remained sluggish along with easing feedstock Ethylene prices. The price of mLLDPE in China fell by 4% this month as the producer prices in China experienced a decline, and consumer prices were on the edge of deflation. This situation might lead Chinese policymakers to implement additional stimulus measures to revive the sluggish demand, which has impacted the polymer markets.

Also, the Indian mLLDPE saw a decline of 4% over the month due to the monsoon season, which has impacted demand from the downstream construction sector. Market observers highlighted diminished demand and prolonged surpluses in Europe, the United States, and China as factors further dampening the sentiment. The demand for Indian mLLDPE in July was reported to be lower than that in June due to the influence of the rainy season.

As per ChemAnalyst, the price of mLLDPE is anticipated to rise in the international markets as the demand may improve in August and September. The forecasted increment in feedstock Ethylene prices may also influence the upward price trajectory of mLLDPE in the coming months.