For the Quarter Ending June 2025
APAC
• April saw a ~5% rise in the Chlorinated Polyethylene Price Index USD 880/MT for June (after USD 850/MT in April). May remained elevated, followed by a ~3.4% drop in June back to USD 850/MT.
• Why did the price change in July 2025? For China, the Price Index in July is expected to decrease, as oversupply conditions emerge and demand softens further due to persistent weakness in the real estate / construction sector.
• FOB Qingdao ranged from USD 850 (April) → 880 (May) → 850 (June), reflecting volatility in export offers.
• Rising cost pressures in April–May from higher polyethylene and chlorine prices (impacted by energy-intensive chlor alkali processes) were partially offset by stable or declining raw material costs by June, limiting further upstream cost escalation.
• Demand remained robust in April–May from infrastructure, cable & construction sectors. However, June’s rise in inventory amid slower real estate-linked downstream activity weighed on consumption—suggesting weaker demand ahead.
• Given the deteriorating demand outlook and elevated inventories, the Price Index in July is forecast to soften further, unless external export demand resurges.
Europe
• Prices fluctuated through April–June due to varying demand from construction and automotive industries, tight supply in some markets, and fluctuating chlorine costs.
• The real estate sector’s mixed recovery impacted the Price Index, especially in downstream PVC-modified product demand.
• Chlorinated Polyethylene Spot Price & Supply Dynamics: European markets faced supply inconsistencies due to import dependency and freight delays. Manufacturers in the region were unable to fully absorb feedstock cost fluctuations, impacting Chlorinated Polyethylene Spot Price.
• Chlorinated Polyethylene Demand Outlook: Demand from wire & cable insulation, impact-modified PVC products, and automotive applications showed modest growth but was offset by sluggish housing and infrastructure activity.
• Chlorinated Polyethylene Production Cost Trend: Energy cost fluctuations, coupled with chlorine and HDPE volatility, affected production margins.
• The Price Index in July 2025 is expected to decrease marginally, as weak construction demand and high stock levels could pressure prices despite higher feedstock costs.
North America
• Prices fluctuated, driven by uneven demand from infrastructure and automotive sectors, along with variable chlorine feedstock costs.
• The Price Index was also impacted by reduced imports from Asia during periods of tight shipping availability.
• Chlorinated Polyethylene Spot Price & Supply Dynamics: The Spot Price was influenced by shipping disruptions, which tightened supply. Domestic production remained steady, but limited capacity expansions constrained flexibility.
• Chlorinated Polyethylene Demand Outlook: Stable demand from construction, automotive, and industrial applications supported market activity; however, regional construction slowdowns limited aggressive price gains.
• Production costs trend remained elevated due to higher energy costs and chlorine price fluctuations.
• The Price Index in July 2025 is expected to increase slightly as automotive and infrastructure restocking activities begin, but gains may be muted by existing inventory levels.
FAQs
Q1: What is the current price of Chlorinated Polyethylene?
A: The Chlorinated Polyethylene Spot Price in China was USD 850/tonne FOB Qingdao in June 2025. Comparable regional prices may vary based on freight and trade terms.
Q2: What is the global market situation for Chlorinated Polyethylene?
A: Globally, supply remains ample with tight export flows from China. Demand is stable but under pressure in construction and real estate linked downstream sectors. Market sentiment turned modestly bearish by mid 2025.
Q3: What is driving the Chlorinated Polyethylene Production Cost Trend?
A: Production cost trends have been driven by changes in chlorine and polyethylene pricing—particularly energy-intensive chlor-alkali feedstocks—and fluctuating global export freight costs. June saw some cost relief, yet margins remained narrow due to inventory pressures.
Q4: What are the expectations from the Chlorinated Polyethylene Price Forecast?
A: The forecast anticipates a softening of the Price Index in July 2025 across China and globally, as downstream demand weakens and inventory levels remain high unless export activity increases.
