In the past week, the global HDPE market saw varied movements, with a price drop in Germany and stable trends across most Asian markets, except for China, which faced a significant decrease. The European HDPE market remained on a downward trend, driven by weaker demand from key sectors such as construction and automotive, both of which are facing challenges due to ongoing economic difficulties in the region. These struggles have resulted in reduced demand and softer HDPE prices. On the other hand, the Asian HDPE market displayed a mixed scenario, with consistent pricing in most nations, though China experienced a marked decline. In Europe, the costs of Ethylene and Naphtha, crucial feedstocks, lessened pressure on HDPE manufacturers. Moreover, falling crude oil prices, caused by regular maintenance shutdowns at Chinese refineries and a drop in imports due to weaker refining activities, have played a significant role in market dynamics. Consequently, HDPE Injection prices in Hamburg (Germany) dropped by 3%, while those for HDPE Injection Moulding in Jiangsu, China, fell by 2% during the week ending October 18, 2024.

This week, HDPE prices in Europe saw a decline due to falling Ethylene feedstock prices and subdued trading activity in the region. Buyers were reluctant to make significant purchases, expecting further price reductions for HDPE, while sellers aimed to reduce their inventory levels in the face of weakening demand from downstream industries, reflecting a broader slowdown in market activity. The price drop was also driven by lower freight rates from Asia to Europe, which increased the availability of products and exerted additional downward pressure on prices. However, these trades appear to be further past peak demand compared to transpacific routes, which has had a notable impact on global HDPE prices.

In contrast, the Asian HDPE market-maintained stability, with demand holding at moderate to low levels. Supply was sufficient to meet market needs. However, market activity in China remained subdued, with buying interest fluctuating between steady and soft. Import negotiations, however, saw some improvement, prompting a slight increase in bids for November-December shipments. Overseas sellers are expected to begin offering cargoes for November loading by late October, which could influence the market outlook.

In plant news, the CNOOC and Shell Petrochemicals (CSPC) are likely to restart their HDPE plant. The company is expected to resume operations at the plant by end-October 2024. The plant was shut for maintenance turnaround on September 20, 2024. The plant is in Guangdong, China, and has a production capacity of 400,000 MT/year.

According to ChemAnalyst, HDPE prices are expected to rise in November, driven by increased procurement activities during the winter season in both the European and Asian markets. Moreover, fluctuations in upstream Crude oil prices and escalating tensions in the West Asian region may affect freight rates, further influencing the price trend.