LLDPE Prices Rise in Asia but Fall in Europe Due to Supply, Demand, and Oil Price Factors

During the third week of June 2025, the LLDPE market showed different trends in Asia and Europe. In Asia—particularly in China—LLDPE prices increased, while in Europe, they kept falling. These shifts were mostly caused by higher crude oil prices, political tensions in the Middle East, and low demand in certain areas.

Key Takeaways:

• LLDPE prices in China increased, supported by rising crude oil prices and lower supply from Iran.
• Ethylene feedstock prices stayed high across regions but failed to support prices in the European market.
• European LLDPE prices declined due to ongoing weak demand and large stockpiles.
• Tensions in the Middle East and the risk of trade disruptions heavily influenced the LLDPE market in Asia.
• Concerns over imports and higher freight costs pushed prices up in Asia, while in Europe, sluggish demand continued to pull prices down despite rising input costs.

In China, LLDPE prices went up due to a mix of global and local factors. Tensions in the Middle East, especially between Israel and Iran, pushed oil prices higher, which increased production costs. At the same time, positive news about U.S.-China trade talks boosted confidence in the market. Locally, limited LLDPE production and fewer exports from Iran led to tighter supply. Even though demand from packaging and agricultural film sectors was seasonally slow, worries about supply shortages and some speculative buying helped support the price rise.

Other Asian LLDPE markets showed steady to slightly rising prices. Traders remained cautiously hopeful as feedstock costs stayed high and there were concerns about possible supply issues if tensions in the Middle East affect shipping through the Strait of Hormuz.

On the other hand, the European LLDPE market stayed weak. In Germany, prices for film-grade LLDPE dropped by 3%, even though raw material costs like ethylene and crude oil were high. To encourage buying, suppliers lowered prices, but demand from packaging and film manufacturers remained sluggish. With enough stock already on hand and low confidence in the market, buyers didn’t rush to restock. Many plastic processors are holding off on building inventory for the summer due to economic uncertainty, expecting prices to stay low.

As per ChemAnalyst, LLDPE prices in Asia are likely to stay firm if oil prices remain high and supply from Iran stays limited. However, weak seasonal demand and uncertainty around tariffs might slow down any further price rise. In Europe, unless demand from end users picks up, LLDPE prices are expected to stay low despite rising production costs. A strong recovery in both regions will depend on better economic conditions and easing geopolitical tensions.