Linear Low-density polyethylene (LLDPE) followed a varied trend across the global market in the last week as the price trend decreased in the Asian market while remaining stable in the European market. The demand for LLDPE remained subdued from the downstream packaging, automotive, and construction sectors in the global market which has influenced price trends, preventing any price surge. Further, feedstock Ethylene prices and supply situations have impacted the regional market dynamics.

Key Takeaways: 

• LLDPE prices declined in Asia but remained stable in Europe. 
• Subdued demand from packaging, automotive, and construction sectors limited price increases. 
• Prices dropped in China due to ample supply and steady ethylene costs. 
• Market balance kept prices steady in Europe, though future US tariffs on PE imports could disrupt supply and pricing.  

LLDPE prices in the Asian market witnessed a decreasing trend amid bearish market sentiments. The Chinese LLDPE market continued to decline this week as the price of LLDPE Film extrusion grade (FOB Shanghai) eased by 0.5%. Further, the depreciating price trend can be linked to ample product supply in the regional market. Steady prices of feedstock Ethylene ensured sufficient product supply as production costs eased.  Also, the demand from the downstream automotive sector faced challenges in the Asian market as the US imposed 25% tariffs on all foreign cars made in April.

In plant news, Sinopec SABIC Tianjin Petrochemical Co. Ltd. has planned a shutdown of its LLDPE unit for maintenance starting March 11, 2025. The plant is located in Tianjin, China, and has a total monthly production capacity of 25000 MT. It is scheduled to restart operations on March 31, 2025. Despite the plant shutdowns in the region, low product demand led to the price decline of LLDPE.

Meanwhile, the European LLDPE markets observed stable price trends in this period amid a balanced gap between supply and demand. The overall market sentiments remained subdued from the downstream packaging and automotive sectors. Further, a 25% tariff is expected to be imposed on PE from the US in April which could lead to supply issues and impact prices in coming months. Market players are following a cautious approach due to uncertainties in the market due to tariffs. Meanwhile, some traders are switching to Middle Eastern sources which might influence the LLDPE prices in Europe.

As per ChemAnalyst, the price trend for LLDPE may continue to struggle in both regions in the near term. The Asian market may observe new offers from the Middle Eastern exporters which might influence the prices, meanwhile, demand is expected to remain moderate to low. Meanwhile, the European LLDPE demand is expected to remain subdued, however, tight supply and US tariffs may cause the prices to fluctuate.