Weak Demand Pushes US LLDPE Prices Down 3.46%, While July Outlook Turns Bullish

USA LLDPE prices are anticipated to recover during July **** as higher ethylene feedstock costs are expected to restore cost-side support to the market. This outlook follows a *.*** decline in late June ****, when easing upstream costs and subdued buying activity weighed on the LLDPE market following the reopening of the Strait of Hormuz and the normalization of global energy flows.

On the supply side, lower ethylene prices remained the principal factor behind the correction in LLDPE prices. Comfortable domestic ethylene availability, elevated inventories, and stable cracker operating rates kept the U.S. Gulf Coast well supplied throughout late June. At the same time, weaker crude oil and naphtha markets, supported by easing geopolitical tensions after the Islamabad Memorandum and the reopening of the Strait of Hormuz, removed much of the upstream cost support that had previously underpinned LLDPE pricing. Export demand for ethylene...