The Global HDPE Market Dampens as Sufficient Supply Caps the Purchasing Appetite
- 31-Aug-2022 4:51 PM
- Journalist: Timothy Greene
Houston, USA- Global HDPE market follows a downward trajectory in the face of weaker global demand and sufficient supplies. Feedstock Polyethylene market prices continued to remain bearish. However, due to logistics constraints and delayed shipments, major olefin producers decided to lower the production rate, stabilizing the prices on the lower end. Most suppliers have high inventories, resulting in a slump in export orders from Saudi Arabia and the USA. The economic uncertainty also dampens the market trading fundamentals across the globe.
If we focus on the Asian market, China has seen its lowest HDPE offers from the USA due to oversupplies and weak purchasing appetite. However, the spot discussions were largely stable on the lower end, and HDPE futures spiraled down this week.
The HDPE market price remains chaotic in the European market, and upstream crude prices oscillated. Feedstock Ethylene prices remain dull, and sellers seem uninterested in completing deals. Regarding the downstream plastic market, the market trading activities remain deterred, and suppliers purchase the product according to their present needs.
Energy futures in the US remain mixed as crude oil mainly rebounded on the concern of potential production cut from OPEC+ Nations. Natural Gas futures were more volatile in the week as strong demand from Europe drove the market higher; before prices came back down, Freeport LNG said it would postpone the partial restart at its Texas plant from Oct to mid-Nov.
According to ChemAnalyst, the price of HDPE in the global market will remain stable, prompted by limited purchasing activities and weak market sentiments. However, rising logistics charges and fluctuations in global energy values will support the price trend and prevent them from falling further. Unless the production hits another hurricane season in the US market, more US cargoes will find their way to export markets in Europe and Asia, right after North and South America.