Sluggish Pricing Trend of Linear Low-Density Polyethylene in the USA Market
- 23-Jun-2022 8:38 AM
- Journalist: Henry Locke
Houston, USA: The market value of LLDPE (Linear Low-Density Polyethylene) has been slumping in the USA domestic market due to recent enhancement in market activity in the search for lower Polyethylene prices. Fortunately, the lowered price material has been made available to the customers; some grades are available in surplus. The manufacturers are trying to reduce the prices more as the inventories have been piling up, and feedstock Ethylene prices have been declining as well. Furthermore, the LLDPE price drop is backed up by the recent decision of LLDPE producers to reduce their Houston export pricing to escalate their sales offshore and clear out their stockpiles that have been overflowing the inventories for a while now.
Furthermore, the bearish pricing trend of natural gas and the plummeting crude oil prices amidst recession tensions and downstream demand concerns owing to the increased rates of interest by the US and the Central Bank of Europe have been severely contributing to the price fall of LLDPE (Linear Low-Density Polyethylene) in the USA market. Though the major buyers of LLDPE tried to take down the prices of LLDPE to an exceptionally lower value, manufacturers saved the market by ending the off-grade price auction at a relatively fair price value.
In addition, the feedstock Ethylene has also been crippling in the USA market, another crucial factor supporting the price decrement of Linear Low-Density Polyethylene. Altogether, abundant supply, overflowing inventories, dropping Houston export pricing, and crawling raw material prices all has been determining the downfall in the market value of LLDPE in the USA.
ChemAnalyst anticipations, “The market trend of LLDPE in the USA would change its sentiments in July, and the prices are most likely to increase in the upcoming weeks as the hurricane season is approaching its peak. Furthermore, the manufacturers would try to keep their margins higher before any new player enters the market. The US trading activity is also expected to gain further momentum in July.”