The global market witnessed stability in the high-density polyethylene (HDPE) price trend in the last week of February. The product prices were impacted amid varying regional demand and supply conditions. While the Asian HDPE market continued to struggle with sufficient product inventories, European HDPE prices held firm amid increased import offers from overseas markets. Similarly, U.S. HDPE prices remained steady despite sluggish demand and sufficient stock levels among converters.

Key Takeaways:

• HDPE prices-maintained stability in the global market during the last week.
• Chinese HDPE market witnessed a stable price trend supported by steady feedstock ethylene prices and seasonal demand.
• European HDPE prices held firm despite weak demand, as stronger import offers, and supply-side constraints prevented declines.
• In the U.S., product demand lagged, with converters maintaining high inventories and buying only as needed.

The Asian HDPE market faced pressure from sufficient local inventories, which saw weak demand from the domestic market. Excessive supply resulted from recent plant startups, keeping prices from rising. Moreover, upcoming planned plant shutdowns in the region between February and June could provide price support in the coming months. However, despite these challenges, market players kept the prices unchanged for the week, backed by steady feedstock ethylene costs and rising seasonal demand for plastic film applications. 

Similarly, the European HDPE prices experienced steady prices majorly impacted by low demand while the cost of imported material remained high. Further, the U.S. and Middle Eastern maintenance season tightened the supply situation, while a weaker euro against the US dollar, impacted the product costs in the regional market. Despite sluggish demand, sellers held firm on pricing, anticipating fewer low-cost spot volumes and a stable outlook for March. 

The U.S. HDPE market observed a similar stable price trend driven by lower demand than the seasonal expectations from the downstream industries. Most converters maintained enough inventories and only restocked as necessary, leading to limited trading activity. While the packaging sector showed steady demand, overall polymer consumption was weak. Although buyers started replenishing stocks in January, rising prices in February slowed stock-building efforts. Despite these dynamics, HDPE prices remained unchanged in the US this week, reflecting balanced supply and demand conditions.

As per ChemAnalayst, HDPE prices across the global market are anticipated to experience an upward price trajectory in the near term. The price trend is expected to be driven by the cost of feedstock Ethylene and upstream Naphtha which might increase the product cost. Further, the cost of materials in the Asian and European markets may be influenced by the cost of imported materials from the Middle Eastern markets which is expected to be influenced by the Ramadan period. Moreover, demand from the downstream industries is expected to increase which might lead to an increase in HDPE prices.