In early March 2025, the LDPE (Low-Density Polyethylene) market exhibited to a mixed trend in the U.S. and Europe. In the U.S., LDPE prices dropped due to weak demand, while in Europe, prices edged up as supply remained tight. Across the global market, LDPE demand stayed low, especially in packaging, construction, and automotive industries. At the same time, the balance between feedstock ethylene costs and supply-demand gaps played a big role in shaping LDPE prices.

Key Takeaways:

• LDPE prices exhibited to a divergent trends in early March 2025 as prices declined in the U.S. while increasing in the European market.
• U.S. LDPE prices eased as the downstream demand remained bearish in this period.
• European LDPE prices were primarily driven by supply tightness.
• Economic uncertainty in Europe led to cautious buying, but supply constraints kept LDPE prices elevated despite weak demand.

In the U.S., LDPE demand is struggling as key industries face challenges leading to a price drop of 0.8% in the first week of March.  Construction activity has slowed down which has impacted product demand. Further, the rising raw material costs, partly due to tariffs on imports from Mexico, Canada, and China, have made things more expensive for builders, reducing demand for products. The automotive sector also faced some challenges as car sales in February 2025  fell compared to last year, leading to less consumption of products including LDPE.

Even though U.S. manufacturing activity expanded in February, this was mostly due to companies stocking up early, worried about future price increases and trade issues. But despite this temporary boost, the LDPE supply remained high, keeping prices low. Further, raw material ethylene prices have fallen, making production cheaper for manufacturers. 

Over in Europe, the situation is different from the German LDPE prices climbed by 0.8%, mainly because of low supply. Domestic production has been cut back, and imports aren’t making up the difference. At the same time, market participants were hesitant to purchase too much due to economic uncertainty.

The LDPE demand in Europe was also influenced by the struggling construction sector, especially in the residential market, where new projects remain low.  While this sluggish consumption would push LDPE prices down, supply shortages have kept prices up. Further, a weaker euro is making imports more expensive, adding to the price increase. Even though global shipping rates have dipped slightly, it hasn’t helped ease LDPE supply issues in Europe.

As per ChemAnalyst, U.S. LDPE prices are likely to keep falling as demand stays weak and raw material prices shift. On the other hand, Europe may see prices continue rising due to supply shortages and limited imports, making the market outlook more optimistic there.