Quarterly Update on Global LDPE Market
For the Quarter Ending September 2020
The Asian LDPE sentiments improved appreciably in the third quarter on the back of strong demand from the downstream sectors as buyers who previously stopped purchasing cargoes on demand disruptions caused by coronavirus paved their way back into the market. As the consumption of packaging and pipe demand increased with seasonal peak in September and October, fundamentals of LDPE traced further recovery with revenues surpassing pre-lockdown levels. However, several turnarounds in North Asia and Middle East kept the market under pressure from the supply side.
A number of unprecedented turnarounds and force majeures along the US Gulf Coast as a ripple effect of Hurricane Laura led to shortage of LDPE supply in times of its surging demand. Export potential of the region was also curtailed by limited availability of the material. The demand outlook remained healthy with prominent recovery expected in the electronics sector followed by continuous increment in packaging demand as people are keener towards home take away of food as an effect of changing lifestyle after the coronavirus.
Beginning of the third quarter in the Middle East was pressured by tightened LDPE supply due to prolonged maintenance outages by some of the leading producers in the region. Demand from food packaging and hygiene applications remained robust with increasing consumption for single use packaging items and disposable plastic sheets. Export revenues also witnessed substantial gains by the end of September, as restriction concerning the travel and trade were lifted across several countries.
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Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Acrylonitrile is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
Acrylonitrile price is correlated with the price trend of crude oil, demand-supply gap, Propylene and with movement across the downstream derivatives such as acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile (SAN) etc.
Basic details and information on financial performance of leading global players in the Acrylonitrile market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.
News & Deals
Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.
ChemAnalyst gathers information through primary research surveys conducted with various LDPE manufacturers, spread across the domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global LDPE market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global LDPE market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on daily, weekly, monthly and yearly basis.
Finally, region-specific markets for LDPE are analyzed and region-wise demand pattern is tracked.
LDPE (Low Density Polyethylene) is a versatile, semi-rigid thermoplastic made from monomer Ethylene. LDPE is highly resistant towards moisture and chemicals, that makes it an ideal preference for packaging industry. The product is highly popular in industries requiring materials with toughness, corrosion resistance and low temperature flexibility. LDPE is majorly utilized for manufacturing of containers, plastic bags, dispensing bottles, computer components, tubes etc. The product is ideally desired for pipes and fittings application due to the offered plasticity and low water absorptivity. Two main methods highly popular for manufacturing LDPE are autoclave and tubular process. Due to higher Ethylene conversion rates provided in the tabular process, it has gained prominent preference over other methods in the past few years.