Category

Countries

mLLDPE Prices Swings Across Regions Amid Economic Pressures and Supply Chain Challenges
mLLDPE Prices Swings Across Regions Amid Economic Pressures and Supply Chain Challenges

mLLDPE Prices Swings Across Regions Amid Economic Pressures and Supply Chain Challenges

  • 01-Jul-2024 4:47 PM
  • Journalist: Nina Jiang

Over the past week, the global Metallocene Linear Low-density Polyethylene (mLLDPE) market exhibited diverse trends and significant price fluctuations across key regions. Europe experienced a bearish trend in the mLLDPE market driven by weak demand, while the United States saw a notable surge in demand. The Asian market, particularly in China and India, maintained stability in mLLDPE prices over the period. These price dynamics were largely influenced by global factors, including declining demand, constrained supplies, and the cost of feedstock Ethylene and upstream Crude oil. Additionally, geopolitical tensions causing disruptions in major supply routes further impacted the global mLLDPE market dynamics.

mLLDPE prices in the USA experienced a notable surge in the third week of June, driven by vigorous trading activity in the spot market where both buyers and sellers engaged actively, leading to quick material exchanges and rising prices. Polyethylene trading dominated in volume, with robust domestic sales and strong export demand significantly boosting transaction levels for mLLDPE. The export market faced upward pricing pressure due to high freight rates out of Asia, while ocean freight from the US remained relatively inexpensive, creating favorable trade conditions for North American resin producers. As freight rates from the Middle East and Asia escalated, international resin buyers from regions such as China, Latin America, and Europe turned to the US market for more competitively priced resin. Also, the rising costs of feedstock Ethylene and upstream Crude oil further increased cost pressures on mLLDPE.

Furthermore, mLLDPE prices in the European market continue to decline this week due to an oversupply situation, despite stable feedstock Ethylene prices. The market is saturated with sufficient material to meet current demand from the downstream construction, packaging, and automotive sectors, even as producers reduce production and deal with both planned and unplanned plant outages. This surplus mLLDPE supplies is further bolstered by a steady flow of imports from the USA and the Middle East. However, the European market faces challenges with higher logistics costs and delays, especially as cargoes are diverted, making imported mLLDPE from Asia more expensive for European converters.

This week, mLLDPE prices in China remained stable, reflecting a balanced supply and demand scenario. Steady demand from the downstream construction market was met by adequate supply, maintaining price stability. The market was influenced by rising upstream Crude oil prices and increasing freight rates, while feedstock Ethylene prices stayed unchanged. Elevated energy costs added to overall market cost pressures. The region's major markets faced logistical challenges due to fluctuating freight rates and ongoing bottlenecks. Suppliers struggled to secure vessel bookings amid a persistent shortage of container space, complicating delivery schedules. Despite these supply constraints, traders kept prices of mLLDPE consistent as domestic stock levels remained firm. As a result, the price of mLLDPE in China was quoted at USD 1304/MT FOB Shanghai for the week ending June 21, 2024.

In plant news, Chevron Phillips Chemical shut down its ethylene unit on June 12, 2024, due to operational issues. The duration of the shutdown remains uncertain. This plant, located in Sweeny, Texas, has a production capacity of 260,000 MT/year.

Related News

mLLDPE Prices Rise in Europe and Decline in Asia Due to Shifts in Supply and Demand Dynamics
  • 21-Aug-2024 8:30 PM
  • Journalist: Patricia Jose Perez
US mLLDPE Prices Decline Post-Beryl, European Prices Rise Due to Supply Constraints
  • 29-Jul-2024 3:57 PM
  • Journalist: Harold Finch
Divergent Trend in Global mLLDPE Market Reflects Impact of Demand-Supply Dynamics
  • 24-May-2024 3:09 PM
  • Journalist: Bob Duffler
Global mLLDPE Market Faces excess supply, Price Decline, Industry faces Challenges in April 2024
  • 24-Apr-2024 5:05 PM
  • Journalist: Yage Kwon