For the Quarter Ending March 2025
North America
The North American LDPE market in Q1 2025 exhibited mixed pricing trends, with an initial rise in January and February followed by a notable decline in March. Strong demand from packaging, construction, and automotive sectors, coupled with supply disruptions caused by Winter Storm Enzo, contributed to price increases early in the quarter. Severe cold weather affected production in Texas and Louisiana, tightening supply and prompting aggressive spot buying. Rising feedstock ethylene costs further pressured market conditions, pushing prices upward.
By March, the market experienced a downturn as supply levels normalized and demand weakened. The implementation of U.S. tariffs on Mexican and Canadian imports added uncertainty, leading buyers to adopt a cautious procurement approach. Despite initial optimism, economic headwinds, rising labor costs, and slowing automotive sales limited LDPE consumption. Lower feedstock ethylene prices and reduced export demand also contributed to the downward pricing trend.
LDPE Film Grade FOB Texas (USA) prices declined by 4.8% in March, marking an overall 1% decrease in Q1 2025 compared to Q4 2024. While early-quarter supply constraints supported price gains, excess inventory, and muted demand in March led to downward pressure. Future pricing will depend on trade policy developments and economic stability, as market participants navigate evolving supply-demand dynamics.
APAC
The APAC LDPE market in Q1 2025 showed an overall upward price trend. Early in the quarter, market sentiment remained cautious as buyers hesitated to engage with rising prices, given uncertainties surrounding global trade policies and inventory buildup concerns ahead of the Lunar New Year. Despite stable feedstock ethylene costs, limited regional supply and strong demand from packaging, construction, and automotive sectors supported price increases. Additionally, higher import offers from Middle Eastern producers contributed to the upward trend. By March, the market experienced tighter supply conditions as Middle Eastern allocations for Asia declined, leading to increased import offers. The packaging and agricultural sectors drove further demand, reinforcing the price momentum. Meanwhile, declining regional shipping costs provided some relief on logistics expenses, helping to stabilize trade flows. However, geopolitical uncertainties, ongoing US trade tensions, and fluctuations in Chinese export policies continued to influence buyer sentiment. LDPE FOB Tokyo (Japan) prices rose by 1.6% in March, with an overall 2% price increase in Q1 2025 compared to Q4 2024. The steady rise in prices reflects tightening supply conditions and sustained demand, but future trends will depend on trade policies, supply chain stability, and global economic conditions.
Europe
In Q1 2025, the European LDPE market experienced fluctuating conditions marked by tight supply and restrained demand. While supply-side disruptions, high U.S. polyethylene prices, and logistical delays due to severe weather in northern Europe exerted upward pressure, demand remained subdued across key sectors like construction, packaging, and automotive. Despite early quarter challenges, the construction industry showed gradual signs of recovery supported by EU Recovery Funds, slightly improving LDPE consumption, especially in energy-efficient building projects. However, cautious buying behavior persisted as inflation and economic uncertainty continued to suppress purchasing power. Market sentiment remained mixed as producers attempted to push prices upward amid constrained supply, while converters resisted significant investments, awaiting potential price corrections and clarity on U.S. tariff developments. Overall, Q1 saw modest price gains driven by supply bottlenecks, although this was counterbalanced by weak demand. The pricing trend for LDPE in Q1 2025 showed a gradual rise through the quarter with March ending with a 2.9% gain for LDPE Film Grade FD Hamburg(Germany). However, compared to Q4 2024, prices in Q1 2025 declined by 1% overall, highlighting the continued fragility of market recovery amid persistent economic and geopolitical challenges.
MEA
In Q1 2025, the LDPE market in the Middle East and Africa (MEA) region showed mixed performance, influenced by seasonal demand, inflationary pressure, and supply-side adjustments. The quarter began with moderate price increases in January and February, driven by steady domestic consumption in packaging and construction, as well as limited supply due to maintenance activities. Regional suppliers reported healthy demand, especially in Saudi Arabia, where strong industrial output supported market sentiment. However, by March, Ramadan-related buying slowdowns and availability of previously stocked, lower-cost material led to weakened demand and a price drop. Export demand remained moderate, with Asia and Turkey showing little improvement. Inflationary trends also influenced cost dynamics, reducing purchasing power in some segments. Despite these headwinds, the LDPE market maintained relative stability throughout the quarter. The pricing trend showed a rise in January and February, before dropping by 0.9% in March. Overall, prices increased by 2% in Q1 2025 compared to Q4 2024. Market participants continue to face uncertainty amid supply fluctuations, cautious demand recovery, and post-Eid restocking hesitations.
South America
In Q1 2025, the LDPE market in South America remained relatively stable compared to the previous quarter, with fluctuating monthly trends shaped by both domestic and international market forces. January and February witnessed modest price increases driven by strong demand across packaging, construction, and automotive sectors. This was further supported by supply constraints from the U.S. due to production disruptions and scheduled maintenance, which tightened regional availability. Higher feedstock ethylene costs also contributed to the upward pressure on prices. However, in March, the market turned bearish as ample inventory, softening U.S. prices, and weakened demand led to a notable decline. Concerns over a potential antidumping duty on U.S. and Canadian PE imports also spurred buyer caution, while falling global freight rates eased import costs. The pricing trend for LDPE Film Grade CFR Santos showed a sharp 3.2% drop in March. Despite the March decline, Q1 prices overall remained steady compared to Q4 2024, highlighting the pressures of inventory buildup, limited buying interest, and regulatory uncertainties shaping market behavior.
For the Quarter Ending December 2024
North America
In Q4 2024, the Low-Density Polyethylene (LDPE) market in North America faced a significant downturn, primarily due to declining demand from critical industries such as packaging, construction, and automotive. Lower feedstock Ethylene prices suggested an oversupply, further pressuring market conditions. The region also contended with logistical challenges, including disruptions from hurricanes and delays caused by a strike by the International Longshoremen’s Association (ILA) at U.S. East Coast and Gulf ports, which compounded supply chain issues.
Adding to the uncertainty was the U.S. Presidential Election, which dampened investments and led to reduced inventory accumulation as businesses adopted a cautious approach. While some optimism persisted about a potential recovery in demand, spurred by expectations of lower interest rates and a more stable political climate, market conditions remained volatile. Concerns about trade flows and resin price stability grew as the incoming Trump Administration signaled potential tariff increases, further unsettling the industry.
The U.S. LDPE market recorded the steepest price adjustments, driven by subdued demand and high supply levels. By December, LDPE Film grade FOB Texas prices had declined to USD 1173/MT, highlighting the broader market slowdown and the challenges faced by the North American LDPE sector.
APAC
In Q4 2024, the Low-Density Polyethylene (LDPE) market in the APAC region exhibited a mixed trend, with initial price increases followed by a decline towards the end of the quarter. The early price rise was driven by increased buying interest and rising offers from overseas sellers for November-December shipments. However, the widening gap between purchase prices and seller offers hindered deal-making, limiting market activity. Supply chain disruptions, particularly at major Asian container ports like Shanghai, Ningbo, and Kaohsiung, further compounded the situation. Typhoon Kong-Rey caused significant congestion and delays, worsening the supply-demand imbalance, as increased freight rates added pressure. As the Chinese New Year approached, shipping capacity became constrained, and higher freight costs worsened the supply chain disruption. By December, the market saw a decline in prices, attributed to eased demand from downstream industries amid year-end destocking. Manufacturing activity showed slower growth, with reduced export orders and weaker employment levels contributing to a cautious market sentiment. Japan experienced the sharpest price adjustments, with LDPE prices in Japan falling to USD 1138/MT FOB Tokyo by the end of the quarter, reflecting the negative shift in market sentiment.
Europe
In Q4 2024, the Low-Density Polyethylene (LDPE) market in Europe faced a steady decline, driven by falling feedstock Ethylene and upstream Naphtha prices alongside weak demand from key industries such as packaging, construction, and automotive. Ongoing economic uncertainties and geopolitical challenges further weakened market dynamics, as buyers exercised caution, expecting further price reductions. This hesitancy, combined with ample inventory levels, exacerbated the oversupply situation as sellers sought to clear stocks. Trading activity remained muted, with lower production costs failing to stabilize the market amid declining demand. A reduction in Asia-Europe Ocean freight rates, influenced by subdued shipping activity post-peak season, dampened import demand, placing additional pressure on LDPE prices. Seasonal effects, including the year-end holiday slowdown, further curtailed consumption from downstream sectors, compounding the overall downturn. In the Eurozone, low housing activity persisted, with minimal signs of recovery in residential construction, significantly impacting LDPE demand in construction-related applications. Additionally, the UK experienced notable price fluctuations, with LDPE Film grade FD prices in Surrey quoted at USD 1183/MT by December. Market sentiment remained fragile as the quarter ended, impacted by ongoing geopolitical tensions and unseasonably mild winter weather, which lowered energy consumption and further influenced production and demand trends.
MEA
In Q4 2024, the Low-Density Polyethylene (LDPE) market in the Middle East and Africa (MEA) region experienced a downward trend, primarily driven by weakening demand across key industries such as packaging, construction, and automotive. Limited product availability, coupled with ongoing supply constraints, contributed to market volatility, forcing traders to adjust prices downward. Geopolitical tensions, including the Israel-Hezbollah conflict, disrupted shipping routes, adding further pressure on logistics and trade in the region. While feedstock Ethylene prices increased, the rising costs were not sufficient to offset the declining demand from downstream sectors, leading to lower pricing levels by the end of the quarter. Saudi Arabia, a key player in the MEA LDPE market, witnessed relatively stable pricing despite the regional challenges. However, the overall market sentiment remained subdued, exacerbated by weaker export demand and competitive offers from other regions. By December, LDPE prices in Saudi Arabia were recorded at USD 1171/MT FOB Al Jubail, reflecting the cautious market outlook and the challenges posed by both supply-side and demand-side pressures. Despite these difficulties, the MEA LDPE market managed to maintain some stability, showing resilience in a challenging market environment.
South America
In Q4 2024, the Low-Density Polyethylene (LDPE) market in South America experienced a notable decline, driven by weakening demand across key sectors such as packaging, construction, and automotive. The influx of cheaper imported materials, particularly from North America, coupled with abundant regional supply, prompted traders to lower prices to maintain market stability. Brazil saw the most significant price reductions, as moderate demand failed to spur any recovery. The strike of approximately 60,000 Brazilian port workers on October 22 further disrupted logistics and vessel operations, exacerbating the already strained market conditions. This strike added to the challenges of a cautious market environment, where weak consumption dampened demand growth throughout November. By December, the impact of year-end destocking limited market activity, with slow recoveries in the construction and automotive sectors reducing the likelihood of a significant rebound. As a result, LDPE Film Grade CFR Santos prices in Brazil were quoted at USD 1302/MT by the end of the quarter, highlighting the ongoing struggles with supply-demand imbalances and logistical difficulties in the South American LDPE market.
For the Quarter Ending September 2024
North America
In Q3 2024, the Low-Density Polyethylene (LDPE) market in North America experienced a decline in prices, marking a challenging quarter for the industry. This downturn was primarily driven by a surplus in supply and subdued demand from major sectors, including packaging and construction, which exerted significant downward pressure on prices.
The ongoing hurricane season further disrupted supply chains, causing logistical challenges and affecting production and distribution networks. These disruptions added to the existing supply-side constraints, amplifying the price decline. Additionally, fluctuating prices of feedstock Ethylene, alongside variations in upstream Naphtha and Crude oil prices, influenced overall market dynamics.
In the USA, the market faced the most pronounced price changes, with a noticeable decline compared to the previous quarter, highlighting the impact of these combined factors. By the end of the quarter, LDPE Film Grade FOB Texas was priced at USD 1256/MT, reflecting the negative sentiment and the challenging pricing environment that persisted throughout Q3 2024. This trend underscored the ongoing pressures facing the North American LDPE market, particularly from supply chain vulnerabilities and demand fluctuations.
APAC
In Q3 2024, Low-Density Polyethylene (LDPE) prices in the APAC region showed a downward trend, reflecting a challenging market environment. This decline was driven by weakened demand from key downstream sectors, such as packaging, construction, and automotive industries. Ample supply levels further pressured the market, as sluggish demand and cautious purchasing behavior among importers intensified the situation. The decline in feedstock Ethylene prices and fluctuations in Crude oil costs also played a role in the overall decrease in LDPE prices, affecting market conditions throughout the quarter. Additionally, Typhoon Yagi caused significant supply chain disruptions across Asia, particularly impacting southern China and Vietnam. The super typhoon caused severe damage in northern Vietnam and heavy rains in southern China, leading to delays in ocean logistics from Haiphong, vessel hold-ups, and container terminal closures in Hong Kong. The severe weather in East Asian ports further worsened congestion at Chinese ports, increasing waiting times at major locations such as Shanghai, Ningbo, Qingdao, and Yantian due to vessel bunching, adding further pressure to the supply chain. Japan saw the most significant price changes, with a sharp decline compared to the same period last year. The quarter ended with LDPE prices in Japan at USD 1114/MT FOB Tokyo, indicating a continued negative market sentiment.
Europe
During the third quarter of 2024, the Low-Density Polyethylene (LDPE) market in Europe experienced a significant increase in prices, driven by multiple influential factors. Primary driver for price trend among these was the rising cost of feedstock Ethylene and upstream Naphtha, which led to heightened cost pressures on LDPE production. Further, fluctuations in Crude oil prices contributed to the overall dynamics of the market, complicating pricing strategies further. Supply constraints were exacerbated by geopolitical tensions in the region, along with port congestions that restricted the availability of various LDPE grades, thereby fueling the price surge. The overall tightness in LDPE supply was further intensified by a notable decline in the manufacturing sector, which saw substantial drops in new orders, purchasing activity, and employment levels during September. In particular, the UK experienced the most pronounced price changes within the region. When compared to the previous quarter of 2024, prices displayed a consistent upward trajectory. Consequently, the price of LDPE Film FD in Surrey rose by 2.6% in August, followed by a slight increase of 0.8% in September, reflecting a stable and favorable pricing environment throughout the quarter.
MEA
In Q3 2024, the Low-Density Polyethylene (LDPE) market in the Middle East and Africa (MEA) region displayed overall stability, with prices experiencing minimal fluctuations. This steady trend was primarily influenced by moderately low demand from key sectors such as packaging, automotive, and construction, combined with sufficient product availability, which helped maintain consistent pricing. External global factors like supply disruptions, increased freight rates, and feedstock price fluctuations, particularly Ethylene, also contributed to the stable market environment by balancing supply and demand pressures. Saudi Arabia, however, showed the most significant price variations. While the overall MEA market remained steady, LDPE prices in Saudi Arabia experienced an uptick compared to the same period last year, indicating a gradual upward trend. By the end of the quarter, the price for LDPE Film Grade FOB Al Jubail in Saudi Arabia was recorded at USD 1138/MT, reinforcing the stable yet slightly positive sentiment in the market. This stability, despite external challenges, highlights the resilience of the MEA LDPE market in maintaining balanced pricing dynamics throughout Q3 2024.
South America
In Q3 2024, the Low-Density Polyethylene (LDPE) market in South America experienced a period of declining prices due to several key factors. The market's negative trend was primarily driven by weak demand from key downstream sectors, including packaging, construction, and automotive industries. An abundant domestic supply, coupled with low international buying interest, further added to the downward pressure on prices. The region also faced logistical challenges such as port congestion, labor disputes, and disruptions from the active hurricane season, which affected supply chains and intensified pricing pressures. Brazil, in particular, exhibited the most notable price fluctuations, reflecting the overall negative sentiment in the market. Despite the downturn, there was a slight increase in prices from the previous quarter, indicating some level of resilience in Brazil amidst difficult conditions. By the end of the quarter, the price for LDPE Film Grade CFR Santos in Brazil was recorded at USD 1382/MT, highlighting the prevailing downtrend and the challenging environment that characterized the South American LDPE market in Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the Low-Density Polyethylene (LDPE) market in North America experienced a sustained decline in prices, which surged only in the last month of the quarter. This downward trend was primarily driven by the low cost of imported materials, which exerted significant pressure on domestic market prices. Despite stable feedstock Ethylene and upstream Naphtha prices, the ample stock availability further encouraged traders to maintain lower pricing levels. Moderate demand from downstream sectors such as construction and packaging failed to absorb the existing supply, reinforcing the downward pricing trajectory.
High freight rates from the Middle East and Asia drove international buyers toward competitively priced U.S. resin, influencing the overall market dynamics. Additionally, seasonal demand fluctuations, with the onset of summer typically heightening activity in key industries, were insufficient to counterbalance the prevailing surplus.
By the end of the quarter, the price of LDPE Film Grade FOB Texas in the USA rose by 4% in June 2024, marking a positive pricing environment overall. Consistent demand, coupled with supply constraints and rising feedstock costs, contributed to a predominantly positive outlook for LDPE pricing in Q2 2024.
APAC
The second quarter of 2024 has witnessed an upward trajectory in Low-Density Polyethylene (LDPE) prices across the Asia-Pacific (APAC) region, driven by a confluence of multifaceted factors. Predominantly, fluctuating crude oil prices have exerted upward pressure on production costs, further compounded by increased freight rates amidst ongoing logistical bottlenecks. The transportation challenges, marked by a persistent shortage of container space, have exacerbated supply chain disruptions, delaying shipments and inflating costs. Additionally, maintenance turnarounds in petrochemical plants across the region have tightened supply, thereby elevating market prices. Energy costs have consistently remained elevated, contributing further to the overall cost pressures in the market. Japan has experienced significant price fluctuations, in the APAC region. Japan's quarter-ending price for LDPE FOB Tokyo surged by 3%, marking a pronounced increase that aligns with the broader regional trends. The overall sentiment for the pricing environment in this quarter has been decidedly positive, with market forces driving a sustained upward movement in prices. This consistent increase in pricing underscores the robust demand dynamics and the supply-side constraints that have characterized the APAC LDPE market in Q2 2024.
Europe
The second quarter of 2024 has proven challenging for the Low-Density Polyethylene (LDPE) market in Europe, characterized by a consistent downward pricing trend. Several significant factors have influenced this decline, including an overabundance of supply, subdued demand from key downstream sectors like construction and automotive, and logistical disruptions. Despite a stable Ethylene feedstock cost, weak market sentiment stemming from global economic uncertainties and competitive pressures from non-European suppliers exacerbated the downward price trajectory. In the UK, the market witnessed the most substantial price changes, underscoring a broader regional trend. Key reasons include persistent global demand weakness, sluggish growth in major economies such as the US and China, and severe weather events disrupting supply chains, notably along the river Rhine. Conclusively, the latest quarter-ending price depreciation in June 2024 for LDPE Film Grade FD Surrey in the UK was 3%. The pricing environment has been notably negative, driven by external economic pressures and internal market imbalances, marking a period of significant price depreciation for LDPE in the region.
MEA
In Q2 2024, the Low-Density Polyethylene (LDPE) market in the MEA region experienced a fluctuation in prices, as the prices remained stable in April, and declined in May, however, witnessed an escalation in June, by quarter end. Several factors contributed to this trend, including easing feedstock Ethylene prices and Crude oil price fluctuations. The construction and packaging sectors showed a decrease in demand for LDPE, while geopolitical tensions and supply chain disruptions, particularly in the Red Sea, affected supply. Freight rates saw a slight increase, but the impact on overall pricing remained contained due to balanced market conditions. In Saudi Arabia, the LDPE market exhibited the most notable price changes within the MEA region. Though the trend remained declining, nevertheless, it rebounded in June amid an escalation in the freight rates amid Red Sea disturbances and port congestions in the Asian region. which has impacted the prices of the products globally and has led to a price surge. Thus, the price of LDPE Film grade FOB Al Jubail in Saudi Arabia increased by 1% by the quarter-end in June 2024.
South America
In Q2 2024, the Low-Density Polyethylene (LDPE) market in South America experienced a sustained decline in prices, with a surge only in the last month of the quarter. This downward trend was primarily driven by the low cost of imported materials from the USA, which exerted significant pressure on domestic market prices. Despite stable feedstock Ethylene and upstream Naphtha prices, ample stock availability further encouraged traders to maintain lower pricing levels. Moderate demand from downstream sectors such as construction and packaging failed to absorb the existing supply, reinforcing the downward pricing trajectory. High freight rates from the Middle East and Asia drove international buyers toward competitively priced U.S. resin, influencing the overall market dynamics.
Additionally, seasonal demand fluctuations, with the onset of summer typically heightening activity in key industries, were insufficient to counterbalance the prevailing surplus. By the end of the quarter, the price of LDPE Film grade CFR Santos in Brazil rose by 3% in June 2024, marking a positive pricing environment overall. Consistent demand, coupled with supply constraints and rising feedstock costs, contributed to a predominantly positive outlook for LDPE pricing in Q2 2024.
