In the second half of March 2026, the LDPE Film Grade FOB Texas market maintained a strong upward momentum, driven by a combination of rising feedstock costs, firm downstream demand, and sustained geopolitical risk premiums. The sharp increase in ethane costs and widening gas-processing margins significantly raised production expenses, prompting producers to push for higher offers while focusing on margin protection. Supply conditions tightened as spot availability remained limited despite stable plant operations, encouraging traders and converters to secure volumes proactively. Demand from the U.S. flexible packaging sector remained robust, particularly from food-grade applications and the growing shift toward recyclable and mono-material polyethylene packaging, which reinforced structural consumption patterns. Additionally, the ongoing Israel–Iran conflict continued to disrupt global energy markets, elevating crude-linked feedstock costs, freight rates, and insurance premiums, thereby increasing overall production economics. While stable feedstock availability and smooth logistics provided some balance, the market sentiment remained firmly bullish, with expectations of continued strength supported by resilient demand and persistent cost pressures.
