In first week of June Low Density Polyethylene (LDPE) prices remained stable in Germany due to a balanced supply-demand environment, particularly supported by steady packaging sector demand. In contrast, China saw a price drop driven by oversupply and limited purchasing activity.
In early June 2025, the LDPE markets in Germany and China moved in different directions. LDPE prices in Germany stayed steady because supply and demand were well balanced. Meanwhile, prices in China dropped due to weak buying activity and too much supply. In both countries, demand from key sectors like construction and automotive played a big role, along with global trade factors and stable availability of raw materials.
Key Takeaways
LDPE prices in Germany stayed stable in the first week of June, supported by a good balance between supply and demand—especially from the packaging industry. Imports from the U.S. and Turkey helped keep supply steady, even with global shipping issues and port delays.
Germany’s construction sector remained weak, particularly in housing, while civil engineering showed little improvement. In the automotive industry, demand was also soft, with a 1.4% drop in new car registrations in May.
Buyers in the spot market were cautious, purchasing only what was necessary and avoiding extra stock. On the production side, lower ethylene costs helped manufacturers keep prices stable without cutting into their profits.
LDPE prices in China fell by 0.7% in early June due to strong supply and limited demand. Local production stayed steady, and regular imports from the Middle East and the U.S. kept inventories full. Most buyers only purchased what they needed, avoiding bulk buying.
Demand from the construction sector remained weak, with slower growth reflected in a drop in the business activity index to 51.0%. The non-manufacturing index also declined, signaling lower overall material usage. Seasonal demand for agricultural film was soft, which kept factory activity low.
On the brighter side, the automotive sector gave some support—retail car sales rose 10% in May, and electric vehicle sales jumped 14%. Still, this boost wasn’t enough to drive overall LDPE demand higher, as other sectors remained slow.
As per ChemAnalyst, LDPE prices in Germany are likely to remain under pressure throughout June due to weak demand from the construction and automotive sectors. However, a mild recovery could follow in July, supported by port congestion and slight improvements in buying interest. In China, LDPE prices may climb in June as restocking picks up and the automotive sector shows stronger demand. That said, prices are expected to dip again in July, with seasonal demand cooling off and buyers continuing to limit large-scale purchases.
