Low Density Polyethylene (LDPE) Prices in the USA Expected to the Continue the Downward Path

Low Density Polyethylene (LDPE) prices in the USA have been falling with mild fluctuations since the past four to five months now. The prices are expected to continue the downward path for the upcoming month also as the demand appears to be stagnant and the prices of feedstock ethylene are falling in the USA. The prices of LDPE were assessed at USD 1995 per tonne in the last week of June, the prices fell to USD 1945 per tonne in the month of July, with the prices falling further to USD 1880 per tonne in the month of August. The prices for the month of October and November are USD 1790 per tonne and USD 1690 per tonne respectively.

The demand has been stagnant due to the declining demand of packaging for online orders after the easing of coronavirus related lockdowns in the USA. Prices of Ethylene have also been falling consistently since July.

LDPE is a versatile, semi-rigid thermoplastic made from monomer Ethylene. LDPE is highly resistant towards moisture and chemicals, that makes it an ideal preference for packaging industry. The product is highly popular in industries requiring materials with toughness, corrosion resistance and low temperature flexibility. LDPE is majorly utilized for manufacturing of containers, plastic bags, dispensing bottles, computer components, tubes etc.

The product is ideally desired for pipes and fittings application due to the offered plasticity and low water absorptivity. Two main methods highly popular for manufacturing LDPE are autoclave and tubular process. Due to higher Ethylene conversion rates provided in the tabular process, it has gained prominent preference over other methods. The global demand for LDPE stood at around 22 million tonnes in 2020 and is expected to grow at a CAGR of around 3.5% during the upcoming years till 2030.

As per ChemAnalyst, “the prices of LDPE are expected to follow the downward trend given that the market appears to remain bearish during the upcoming month also. The demand is expected to pick up in the export market in the first quarter of the next year. This might cause the prices to fluctuate a little bit in the first quarter of the upcoming year.”