High-Density Polyethylene (HDPE) prices in the United States have exhibited an upward trajectory in the first week of August, concluded on August 4, 2023. This price surge can be attributed to heightened demand for HDPE from various sectors, including the packaging, construction, and automotive industries. Further, the upward movement of feedstock Ethylene and upstream Naphtha prices throughout the week has further supported this upward price trend. In contrast, the European market has witnessed a decline in HDPE prices, mirroring the trend in feedstock Ethylene prices. However, mixed market sentiments were observed for the Asian countries amid variations in demand dynamics.

In the U.S., the HDPE market has experienced a price upswing following a period of relative stability. This price escalation aligns with the concurrent upward trajectory observed in feedstock Ethylene and upstream Naphtha prices. Due to a consistent demand for HDPE in the United States, suppliers and manufacturers face the challenge of coping with increased requirements. This has led to a significant rise in the prices of HDPE. Thus, the HDPE Injection Molding grade FOB Texas prices increased by 2% over the week.

Conversely, Germany's HDPE Injection grade FD Hamburg prices have undergone a 2% reduction over the week, while feedstock Ethylene prices have maintained a stable trend. The European market has been contending with growing difficulties for the past few months, propelled by increasing inflation rates and ongoing market uncertainties. The prevailing economic slowdown significantly contributes to the deteriorating market conditions experienced in the region. Although the inflation rate in Germany, as per Eurostat data, has reduced from 6.8% in June 2023 to 6.5% in July 2023 (as compared to the same month the previous year), it is still high to impact the market dynamics in Europe.

HDPE prices displayed a mixed trend across the Asian market, influenced by demand dynamics. Chinese HDPE prices experienced a decrease, while the Indian market demonstrated an upward movement in prices. In contrast, other Asian nations encountered stability in HDPE prices throughout this week. Despite traders aligning their offers with the positive trajectory of upstream energy values, trading activity within the spot market was subdued due to demand uncertainty. Market reports suggest that converters exhibited caution in their purchasing behavior, refraining from bulk inventory acquisitions and instead focusing on acquiring materials to fulfill existing orders. It is worth noting that the peak demand season, which traditionally starts in late August, is anticipated to influence the market's dynamics.

In plant news, Bora Lyondellbasell Petrochemical shut down its HDPE unit at the end of July 2023 for a maintenance turnaround. However, the duration of the shutdown could not be ascertained. The plant is located in Panjin, Liaoning, China, and the unit has a production capacity of 350,000 MT/year.

According to ChemAnalyst, there is an anticipation of a price upswing for HDPE in the US and Europe during the third quarter of 2023. The surge in demand from the construction and automotive sector in the US, coupled with anticipated economic developments, could potentially contribute to the upward trajectory of HDPE prices. Similarly, European countries might observe a price rise for HDPE during the third quarter, driven by the potential increase in feedstock Ethylene prices alongside the upward movement of energy prices.