For the Quarter Ending March 2024
North America
In North America, the R-LLDPE (Recycled Linear Low-Density Polyethylene) market in the first quarter of 2024 showcased a pattern of stability with moments of mild volatility. The market faced similar pressures as seen in Europe, such as fluctuations in raw material costs and supply chain challenges.
At the start of the quarter, the market saw prices that were reflective of a steady demand, mirroring the global trends of a cautious but consistent need from the packaging and construction sectors. As the quarter progressed, despite the fluctuations in upstream costs due to the volatile oil market and disruptions in supply chains, particularly those impacted by geopolitical tensions, prices remained relatively stable.
The price stability in March was notable, considering the potential for disruption from both international and domestic factors. The prices for R-LLDPE remained consistently around the same point, unaffected by the sporadic increases in feedstock costs or the moderate demand from the downstream markets. Overall, the North American R-LLDPE market in Q1 2024 demonstrated a level of resilience, ending the quarter on a stable note. This was due to a combination of sufficient inventory levels, strategic stockpiling to counteract supply uncertainties, and a market that has become adept at navigating through a mix of subdued demand and supply chain intricacies.
APAC
The first quarter of 2024 has been characterized by increasing prices for Recycled-Linear Low-Density Polyethylene (R-LLDPE) in the APAC region. Several factors have influenced market prices, including enhanced demand from various end-use industries such as packaging and automotive, coupled with limited supply due to operational adjustments in production facilities. China, in particular, has witnessed volatile price in the R-LLDPE market. The overall trend in the country has been positive, with prices showing a 1% increase from the previous quarter. The percentage change from the same quarter last year, however, has been negative at -17%.
In terms of seasonality, the first half of the quarter recorded a 3% price increase compared to the second half. This can be attributed to factors such as increased demand and limited supply during the early part of the quarter. As of the latest quarter-ending price, R-LLDPE-Extrusion Grade in China is priced at USD 785 per MT on FOB - Tianjin basis. This reflects the overall pricing environment in the R-LLDPE market during the first quarter of 2024.
Europe
The European R-LLDPE (Recycled Linear Low-Density Polyethylene) market in the first quarter of 2024 began with a slight uptick in prices but soon faced various pressures leading to a fluctuating price landscape in Germany. The quarter started with R-LLDPE translucent pellets at a price of USD 1090 per MT. A brief surge in spot purchasing activities drove the price up in mid-January, but this was counterbalanced by a downtrend influenced by a reduction in the cost of bottle scrap and a cautious buying sentiment due to reduced demand in key sectors like packaging and construction. Subsequently, the prices took a downward turn in February as buyers resisted higher costs, and market off-takes slowed. Despite this dip, the market managed to recover slightly in March, with the prices settling at USD 1110 per metric ton for the rest of the month. This recovery was attributed to a cautious increase in demand and spot purchasing activities, despite ongoing challenges such as supply chain disruptions in the Middle East and subdued demand from downstream industries. The pricing in March stayed unchanged, reflecting a market attempting to find balance amidst cautious demand, adequate supply levels, and a backdrop of geopolitical tension impacting supply routes. Throughout Q1, the European R-LLDPE market demonstrated resilience, ending the quarter with stable prices despite the pressures faced.
MEA
In the first quarter of 2024, the Middle East and Africa (MEA) market for Recycled Linear Low-Density Polyethylene (R-LLDPE) experienced relatively stable dynamics, particularly in Saudi Arabia. The market kicked off the year with consistent pricing, maintaining a steady rate at USD 780 per MT until mid-February. During this period, several factors such as subdued demand from the packaging and construction sectors and high availability of scrap LLDPE products influenced the market, keeping prices unchanged. In mid-February, prices saw a slight increase, influenced by rising costs in feedstock LLDPE and upstream Ethylene. These increases were attributed to tight availability and increased demand within the Polyethylene industry. The price further climbed by the end of February, marking the highest price for the quarter. This upward trend was driven by heightened production costs and a moderate inquiry level from the packaging industries. Throughout March, the price remained constant at USD 795 per MT. Despite potential disruptions from ongoing regional tensions and shipping issues in the Red Sea, the market-maintained stability. This period saw a resurgence in purchasing activities, spurred by improved market sentiment and stabilization in upstream prices. While overall market conditions were subdued, there was a noticeable shift towards stabilizing supply chains and replenishing stocks, which helped maintain consistent pricing. Overall, the MEA R-LLDPE market in the first quarter of 2024 was characterized by moderate demand and supply dynamics, with slight price fluctuations mid-quarter but general stability towards the end.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 for the Recycled-Linear Low-Density Polyethylene (R-LLDPE) market in North America was marked by a bearish outlook due to sluggish market offtakes and declining demand from downstream packaging and construction industries. The abundance of product supply relative to low demand and ample inventories in the region led suppliers to offer discounts on the commodity to facilitate sales. The market encountered several challenges characterized by reduced demand from downstream industries, including packaging and construction, leading to a decline in market dynamics. The market was oversupplied due to muted trading activities, and the weakening PMI index added further complexity to the market landscape.
Despite efforts to balance the supply-demand dynamics by reducing production rates, major market players experienced a softening trend in R-LLDPE prices. However, healthy procurement activities from end-user businesses could be observed, which may help to stabilize the market.
In the United States, which experienced significant changes in pricing, there was a lateral price trend influenced by the economic pricing of virgin LLDPE over R-LLDPE. North America faced challenges in the R-LLDPE market, with a bearish outlook driven by slow market activity, weakened demand, and surplus product availability. Despite the potential for increased demand in certain sectors, the market remained uncertain, and discounts were offered to stimulate sales.
APAC
The fourth quarter of 2023 for the Recycled-Linear Low-Density Polyethylene (R-LLDPE) market in the APAC region was characterized by a bearish outlook due to slow market offtakes and deteriorating demand from the downstream packaging and construction industries. The high supply of the product over low demand and sufficient inventories in the region further pushed suppliers to provide discounts on the commodity to sell off their material. The growing demand for electrical goods and adoption of lightweight materials in industries such as packaging and electronic applications were anticipated to drive the R-LLDPE market, but the market remained unstable. China, which experienced the maximum changes in pricing, showcased a sideways price trend, influenced by the economic pricing of virgin LLDPE over R-LLDPE. The correlation price percentage of China in Q4 was negative 2.6%, while the percentage change in price from the previous year's Q4 was negative 5%. The quarter ending price of R-LLDPE-Extrusion Grade -FOB Tianjin in China was USD 760/MT.
Europe
The Recycled Linear Low-Density Polyethylene (R-LLDPE) market in Europe witnessed a decreased performance in the current quarter of 2023 (Q4), with Germany being the most affected country. The market faced several challenges in the form of reduced demand from downstream industries, including packaging and construction, leading to a decline in market dynamics. The market was oversupplied due to muted trading activities, and the weakening PMI index added further complexity to the market landscape. Despite efforts to balance the supply-demand dynamics by reducing production rates, major market players experienced a softening trend in R-LLDPE prices. The primary driver behind the price decline was the negative demand from downstream industries involved in the production of recycled consumer goods and packaging materials, particularly when compared to the demand for virgin LLDPE products. The correlation price percentage of Germany in Q4 was negative 9.2%, while the percentage change in price from the previous year's Q4 was negative 11%. The latest price of R-LLDPE Translucent Pellets FD-Hamburg in Germany at the end of Q4 was USD 1060/MT.
MEA
The current quarter (Q4) of 2023 has been challenging for the Recycled-Linear Low-Density Polyethylene (R-LLDPE) market in the Middle East region due to weak demand from downstream sectors such as packaging and construction. The market faced an oversupply situation due to consistent material production, resulting in high inventories and hesitant buyers. The sustained weakness in energy prices and the ready availability of post-consumer and industrial waste in the region positively influenced the production cost of fresh R-LLDPE film. The ongoing rise in energy costs due to the Israeli-Palestinian conflict resulted in increased production expenses, contributing to a price increase. Saudi Arabia witnessed a decline in prices due to unfavourable demand projections from downstream industries engaged in the production of recycled consumer goods and packaging materials. The market maintained a well-balanced condition in terms of supply and demand, contributing to market stability. The latest price of R-LLDPE -Blown Film Spot Ex-Riyadh in Saudi Arabia at the end of Q4 2023 was USD 794/MT. The price has decreased by 3% from the previous quarter and 12% from the same quarter of the last year.
For the Quarter Ending September 2023
North America
In the United States market for Recycled Linear Low-Density Polyethylene (R-LLDPE), a noticeable declining trend was observed throughout the entire third quarter of 2023. At the beginning of Q3, the United States R-LLDPE market faced uncertainty with lower demand projections from key sectors like Packaging and Textiles, leading to fluctuating demand patterns. Domestic pricing for (R-LLDPE) assessed a declining price trajectory during the quarter. The downstream sector, including Packaging and plastics industries, exhibited wavering demand patterns, contributing to cautious market sentiments. The consistent production rate of material led to oversupply inventories, as demand fell short of expectations from the downstream industries. Enterprises didn't show much interest in bulk purchasing. Market participants preferred procuring their stocks on an immediate basis. Furthermore, during this period, the absence of notable changes in factors affecting final prices led to continued price decreases in the United States market. Demand for R-LLDPE from the domestic market remained subdued. This trend was in line with the market dynamics and conditions observed over the previous month. As the last month of Q3 approached, the prices of R-LLDPE in the United States market continued to decrease, in keeping with the market dynamics and conditions observed over the previous month. The market faced lower demand from downstream industries, notably the Packaging and Textiles sectors, and remained cautious due to ongoing uncertainties.
APAC
In the Chinese market, Recycled Linear Low-Density Polyethylene (R-LLDPE) experienced a noticeable declining trend, with a decrease of approximately 8.2% throughout the third quarter of 2023. At the beginning of Q3, the Chinese R-LLDPE market faced uncertainty with lower demand projections from key sectors like Packaging and Textiles, resulting in fluctuating demand patterns. Moving forward in the Q3, the domestically traded price of Linear Low-Density Polyethylene (R-LLDPE) continued to follow a declining price trajectory. The downstream sectors, including Packaging and plastic industries, exhibited a wavering demand pattern, leading to cautious market sentiments. Additionally, the consistent production rate of material led to oversupply inventories, as demand fell below expectations from the downstream industries. Enterprises didn't show any interest in bulk purchasing, and market participants were more inclined to procure their stocks on an immediate basis. While demand from the automotive sector was moderate, it was not sufficient to hold the market at a steady position. In the last month of Q3, due to the absence of notable changes in the factors affecting final prices, the prices of R-LLDPE in the Chinese market continued to decrease in line with the market dynamics and conditions observed over the previous month.
Europe
In the European market for Recycled Linear Low-Density Polyethylene (R-LLDPE), the third quarter of 2023 witnessed a noticeable declining trend, with a decrement of approximately 9.6% throughout the entire period. At the beginning of Q3, the market encountered several challenges, resulting in a consistent decline. The market faced extended weakness in buyer appetite in both domestic and international markets. Sluggish end-user consumption in key industries such as film production and the packaging sector prompted market participants to maintain weaker prices to remain competitive and economically viable. In August, there was a rise in post-consumer product collection rates, which increased the availability of base material. However, weak consumption rates from key downstream sectors posed difficulties for recyclers. Transactions remained challenging, with low purchasing activities and feeble competitive bidding offers contributing to margin compression. As the last month of Q3 approached, the R-LLDPE segment was influenced by the region's weak Purchasing Managers' Index (PMI), which had cascading effects on market dynamics. Reduced manufacturing activities and industrial output led to a decline in demand for R-LLDPE from sectors such as packaging and construction. Additionally, the R-LLDPE market faced challenges due to the weaker price support of virgin LLDPE materials and the increasing collection rates of post-consumer products. These dynamics made it challenging for recyclers to regain market growth.
MEA
In Saudi Arabia, the Recycled Linear Low-Density Polyethylene (R-LLDPE) market experienced a mixed trend during the third quarter of 2023. The price of R-LLDPE experienced a minimal decrease of approximately 1.1% during the entire Q3. At the beginning of the quarter, the market faced consistent challenges due to sluggish demand from downstream sectors like textiles and packaging. While the automotive sector exhibited robust global demand, it wasn't sufficient to alter the prevailing market trend. Moving to the second month of Q3, the balance between supply and demand kept the market for R-LLDPE stable throughout this period. The market remained well-saturated with stable pricing, which muted further product trades in the region. Although post-consumer product collection rates improved and costs for virgin LLDPE decreased, the increasing base material availability affected production costs. However, sluggish demand from key industries like packaging and film production posed challenges for recyclers in maintaining their profit margins. As the last month of Q3 approached, the R-LLDPE market demonstrated a notable upward trend. The market's resilience was further underpinned by consistent demand from crucial sectors like Electrical & Electronics and consumer goods manufacturing industries, acting as bullish forces. However, the subdued demand in the packaging sector contributed to only a slight increment in the price.
For the Quarter Ending June 2023
North America
Based on recently disclosed trade data, there was a noticeable drop in the price of R-LLDPE in the North American market during the second quarter of 2023. This decrease in pricing coincided with an upswing in inventory levels, which has been linked to a decline in the consumption rate of the product within the region. Moreover, the production of feedstock ethylene and the yield of 1-butene, 1-hexene, and 1-octene were negatively affected by the enhanced utilization of the product by downstream plastic manufacturers operating in the area. These alterations have resulted in reduced demand for the polymer and resin sector, as corroborated by publicly available market research. Market participants have expressed concerns about this development and its implications for future trading activities, as reported by industry sources. The spot market continued to observe a slower pace. Despite the lower spot price offers, petitions from the enterprises remained low. Additionally, the manufacturers were seen under pressure with a declining demand situation and were found to claim a lower consumption rate of R-LLDPE from the associated downstream businesses.
APAC
In the second quarter of 2023, the market price of R-LLDPE experienced a notable decrease in the Asian market, dropping to USD 943/ton Extrusion Grade FOB Tianjin in the Chinese market during April. Uncertainty persists regarding market sentiment among buyers within the downstream Packaging and plastics sectors, leading to diminished consumption rates from primary users contributing to surplus stockpiles in the region. Imports between China and India were adversely affected by waning buyer interest over the preceding months, while supply patterns remained unchanged between other Asian nations and the Indian market. Nonetheless, suppliers continue to address queries about their available stocks. The market price of Recycled-Linear Low-Density Polyethylene (R-LLDPE) continues to follow a descending trajectory due to persistently dwindling product demand and regulatory restrictions imposed on plastic materials by downstream Packaging and plastic industries in the region. These factors, coupled with low labor costs and convenient access to raw materials, encourage traders to invest in the product and submit competitive bids that compress profit margins. Production rates among key manufacturers have declined, resulting in unfavorable market fundamentals. Trading activity occurs on a need basis, with suppliers hesitant to procure substantial quantities of the product anticipating further price fluctuations.
Europe
During the second quarter of 2023, the price of R-LLDPE fell to USD 1461/ton Translucent Pellets FOB Hamburg in the German market. This decline was primarily driven by a drop in the consumption rate reported through market trade data, leading to increased inventory levels. The reduced utilization of R-LLDPE by major packaging and plastic industries contributed to abundant supplies in the region. Moreover, lukewarm interest expressed by potential purchasers from foreign markets had a negative effect on local market sentiments. Participants in the market appeared guarded, anticipating slower growth in earnings relative to historical norms. At present, the market is valued at a PE ratio of 16.1x, beneath its three-year mean PE of 26.5x. As indicated by market statistics, the inventory level of the product rose owing to a heightened consumption rate. The lower the market value, the more moderate the supply chain of the product, according to the trade data. The shipment situation was sufficient to help in keeping trade with the merchants and the consumers.
MEA
The market price of R-LLDPE plunged as per the trader’s data at USD 900/ton Blown Film Spot Ex-Riyadh in the MEA. During the second quarter of 2023, the price of R-LLDPE fell to USD 1461/ton Translucent Pellets FOB Hamburg in the German market. This decline was primarily driven by a drop-in consumption rate reported through market trade data, leading to increased inventory levels. The reduced utilization of R-LLDPE by major packaging and plastic industries contributed to abundant supplies in the region. Moreover, lukewarm interest expressed by potential purchasers from foreign markets had a negative effect on local market sentiments. Participants in the market appeared guarded, anticipating slower growth in earnings relative to historical norms. At present, the market is valued at a PE ratio of 16.1x, beneath its three-year mean PE of 26.5x. As indicated by market statistics, the inventory level of the product rose owing to a heightened consumption rate. The inventory rate of the product elevated due to the lower consumption rate of the product from the downstream plastics sector, as per the trade data.
For the Quarter Ending March 2023
North America
R-LLDPE (Recycled Linear Low-Density Polyethylene) has decreased in the first quarter of 2023 due to a decline in demand from downstream industries such as films and packaging. This has resulted in a downward trend in prices for R-LLDPE. The poor demand fundamentals in the domestic market were the primary reason for the downward trend in prices. Additionally, the oscillating feedstock Ethylene prices also contributed to the decline. The falling regional uptake from packaging industries has negatively impacted R-LLDPE demand from these sectors. Under such circumstances, the sufficient inventory levels had made local R-LLDPE makers hesitant to produce more products. As a result, during the first quarter of 2023, the market for R-LLDPE showcased a downward trajectory.
APAC
In the first quarter of 2023, the R-LLDPE (Recycled Linear Low-Density Polyethylene) market in Asia experienced conflicting emotions. Prices fluctuated, and the upstream crude oil market's turbulence had an impact on production costs. But the downstream market had a sizable appetite for purchases, and the packaging market had stabilized at a high level, creating a high level of excitement for downstream procurement. Though the market was optimistic because of the strong supply and demand sides, the overall market environment was favorable. Despite these supportive factors, the market also experienced a short-lived downtrend because there were enough inventories in the area. Overall, during the first quarter of 2023, the R-LLDPE market in the Asian market fluctuated.
Europe
The European R-LLDPE (Recycled Linear Low-Density Polyethylene) market experienced pressure during the first quarter of 2023 due to weak demand and oversupply. The lower purchasing activity, coupled with weak end-use consumption from films and packaging industries, led to production curtailment as producers attempted to mitigate the effects of limited buyer appetite. Local R-LLDPE makers were also hesitant to produce products due to sufficient inventory levels to fulfill consumer demand. The overall weakness in other film industries also affected customers' attitudes toward the R-LLDPE market. As a result, the outlook for R-LLDPE-Translucent Pellets during the first quarter of 2023 appeared to be gloomy, with prices hovering at USD 1415/MT FD Hamburg during March.
For the Quarter Ending December 2022
North America
The price of recycled linear low-density polyethylene decreased in North America during this quarter, just like it did in Europe. The fall in the price of upstream crude oil had a significant impact on the cost of this commodity in the United States. Because downstream businesses preferred virgin LLDPE for their manufacturing processes, they only had a passing interest in this product. As a result, there were more unsold quantities of this product in inventories, necessitating quote reductions on the part of suppliers and sellers to increase sales and clear out stocks.
APAC
This quarter, the market sentiments for recycled liner low-density polyethylene were mixed in the Asia-Pacific region. In general, this product's price increased in China in the second week of October, remained stable throughout November, and decreased in December. The price of this product was affected by lower crude oil prices. The implementation of Covid-19 restrictions hampered downstream companies' production activities, resulting in a decrease in demand for this product, which also contributed to the cost reduction. Throughout this quarter, the price of this product decreased in India. The average interest in this product from packaging and construction materials manufacturers and plastics product manufacturers impacted R-LLDPE's cost. The subpar performance of the upstream crude oil market was another factor in the cost reduction.
Europe
The price of recycled linear low-density polyethylene in Europe decreased significantly during this quarter. The cost of this product began to decrease in the third week of October, remained stable for a while, decreased twice in December, and remained inactive for the final few weeks of this quarter. This product was receiving average demand because businesses downstream were more concerned about rising energy costs as a result of the ongoing conflict between Russia and Ukraine. As a consequence of this, numerous stocks of this product were not traded.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the R-LLDPE market in North America experienced ups and downs. There was occasionally an oversupply of this product in the market as a result of downstream companies' preference for non–recycled LLDPE over this product for their manufacturing activities, which sparked a modest interest. However, due to the stability of the demand-to-supply ratio, this product's prices remained relatively constant for the majority of the time. Due to the summer break, the LLDPE recycling companies shut down their facilities.
APAC
Recycled Liner Low-Density Polyethylene was experiencing mixed market sentiments in the Asia–Pacific region this quarter. When it comes to India, in the first two months, the cost of this product witnessed a downfall. The reduction in cost was primarily attributed to the bearish upstream crude oil market, and the other main reason behind the price reduction was the weakening of the Indian Rupee against the U.S. dollar. Packaging and construction materials, as well as plastic products manufacturing firms, were showing average interest in this product, which, too, had an impact on R-LLDPE's cost. In China, overall, the price of this product stepped down in this quarter. The downfall in cost was because of the diminished demand for this product from downstream companies, as they were facing power shortages, which hampered their production activities. Upstream companies, too, had to reduce their manufacturing rates because of uncertainties in power supply. Reduced crude oil prices also had an impact on the cost of this product. Hence, R-LLDPE closed its market this quarter at USD 990 per MT for extrusion grade on FOB – Tianjin basis.
Europe
Between July and September, the cost of Recycled Linear Low – Density Polyethylene in Europe decreased significantly. Because downstream businesses were more concerned about the uncertainty of energy supplies as a result of the ongoing conflict between Russia and Ukraine, this product was receiving average demand. As a result, there were ample stocks of this product that were not traded. Energy costs were so high that upstream companies had to lower their production activities. On FOB - Hamburg basis, this product ended the quarter at USD 1,537 per MT for translucent pellets grade.
For the Quarter Ending June 2022
North America
Spot R-LLDPE offers improved significantly and witnessed an uptrend in the second quarter of 2022 in the North America Region. The diminished COVID cases have pushed manufacturing capacities to operate at their full capabilities. Also, the prices of upstream LLDPE have surged by 2% from the first quarter amid strong demand from the downstream packaging sector. Additionally, the high price of crude oil amid global supply chain disruptions brought on by the Russia-Ukraine war has pushed the manufacturing costs of R-LLDPE in the regional market. Furthermore, the top market participants are focused on product innovations utilizing green technologies, which has become a crucial factor in the market growth of recycled plastics.
APAC
R-LLDPE prices witnessed mixed sentiments in the Asia-Pacific region during the second quarter of 2022. In China, the supply has been stained by pandemic-related restrictions. The curtailed supplies of plastic scrap provoked industrial production at its lowest level amid the active demand from the downstream packaging sector. Furthermore, in India, the price realizations of R-LLDPE have significantly surged by 6.5% from the prices observed at the first quarter-end. The top market participants are stepping up their efforts for green packaging materials, prompting an upward pressure on R-LLDPE costs. Also, the fluctuating energy costs have pressured the market sentiments of R-LLDPE in the domestic Indian market. The prices for R-LLDPE-Film Extrusion Spot Ex-Delhi NCR (India) settled at INR 110700 per ton in June 2022.
Europe
In the second quarter of 2022, the R-LLDPE price in Germany increased due to greater demand and sluggish supplies. The supply disruption brought on by conflicts between European nations has pressured the global crude oil prices, inflicting the market value of R-LLDPE. The upturn in energy costs and escalated freight charges amidst global supply-side concerns have substantially influenced the price trends of R-LLDPE in the spot market. Also, the curtailed availability of post-consumer bales has pushed the costs up and exacerbated the market inquiries for R-LLDPE. In addition, the hampered trade activities due to technical failures in Chinese export ports intensified the situation even further. The R-LLDPE-Translucent Pellets FOB Hamburg averaged USD 1750 per ton in June.
For the Quarter Ending March 2022
North America
R-LLDPE prices increased in the North American region firmed throughout the first quarter of 2022 due to the high values of feed LLDPE. The feed LLDPE values rose by 19% from the last quarter of 2021 and increased by 8% from January to March 2022. On the other hand, the demand from downstream packaging and tubing industries remained high in the mid-quarter of 2022. After the mid-quarter, the production cost of R-LLDPE rose because of the uncertainties in the global crude oil and natural gas supplies due to the war in the East European region.
Asia Pacific
Prices of R-LLDPE showed high volatility in the Asian region. In China, prices decreased because of an overflow of inventories in March. Prices on the FOB basis were accessed at USD 943 per tonne in China by the end of Q1. The registered values declined by 2% from the last quarter of 2021. However, in Indian Market, prices increased in Q1 because of increased demand from the consumer sector after the government retrained the usage of single-use plastic materials. In India, R-LLDPE values rose by 1% from the last quarter. The prices rose significantly after mid-quarter and settled at USD 1362.06 per tonne in the Indian Market by the end of Q1.
Europe
Prices of R-LLDPE increased in the European region during the first quarter of 2022. Europe’s dependence upon Russian crude oil and natural gas supplies affected energy costs and production costs of feed LLDPE because of a sharp rise in upstream Ethylene and Naphtha prices. Also, curtailed energy rates during the winter months in Europe impacted the production rate of recycled products in Q1. The average observed increment in R-LLDPE prices was 6% since the last quarter of 2021. The prices of translucent pellets at Ex- Hamburg settled at USD 1650 /tonne in the final week of March 2022.
For the Quarter Ending December 2021
North America
The North American R-LLDPE market trended on bullish traits upon tightened supply availability of raw materials. The pressure on the virgin LLDPE market owing to the still-recovering stage of the hurricane-hit productions in the USA was rippled to the R-LLDPE market prompting the manufacturers to offer firm contracts to the downstream commodity packaging and household products sector. Overseas arbitrage also suffered heavily with the ongoing port vessel scarcity. However, amounting resistance to the soaring price trends came towards the last month of the quarter as the market stabilized from improvement in supply chains and virgin LLDPE production increase. Demand in the last month of the quarter lost steam with restricted market movement amid the resurging Coronavirus cases and dawning festive season. The FOB prices of R-LLDPE in the USA were assessed at around USD 1735/MT during December.
Asia
The Asian R-LLDPE market was seesawed owing to the region-specific fluctuations in the prices. Despite the input cost strength due to energy rationing in China, the prices remained underwhelmed owing to unfavored demand fundamentals. However, with demand picking up gradually the prices strode upwards reaching the highest levels of USD 950/MT during December. In India, the prices showed buoyancy during October under the impact of raw material crunch and global inflation in the virgin LLDPE market. The festive period uptick in household and electronics sales boosted the demand for R-LLDPE packaging in these sectors, thereby causing the prices to reach new heights. The year-end stock clearing activities and softer buying sentiments in winters tamed the R-LLDPE price levels which settled around 1270/MT Ex-Delhi.
Europe
The growth in flexible polyethylene recycling capacity towards the end of Q3 catapulted the build-up of R-LLDPE inventories that catered satisfactorily to the demand during October. However, the critically short energy levels in Europe pulled back the efficiency in the recycling process, gradually inducing a demand-supply gap in the market. The spot trading market also looked pressurized with limited supplies and prolonged logistical constraints. Meanwhile, the demand from the downstream industries continued to portray bullishness thereby exerting an upward pressure on the R-LLDPE traded costs. Trending highest during December, the prices of R-LLDPE were assessed as USD 1560/MT on FOB basis.
