In the past week, the global Linear Density Polyethylene (LDPE) market witnessed a depreciating trajectory, with a pronounced decline across Europe and much of Asia, though the Asian market showed some regional variation. Unlike other areas, LDPE prices in China, Japan, and South Korea remained stable, while other Asian nations experienced price drops. This trend was primarily driven by a decrease in feedstock Ethylene prices, leading to lower production costs for LDPE. Furthermore, weak demand from downstream sectors, such as construction, automotive, and packaging, exerted downward pressure on the product prices. Abundant supply in regional markets led traders, especially in Europe, to reduce prices. Consequently, in Germany, LDPE Film grade FD Hamburg price fell by 1.5%, influenced by specific local demand conditions. Meanwhile, in China, LDPE Adhesive Film grade was quoted at USD 1403/MT CFR Shanghai, while other Asian markets saw LDPE prices decrease by around 1% in the week ending September 20, 2024.

European LDPE prices remained under downward pressure due to ongoing weak demand, creating challenges for the market. The environment was marked by volatility, as the market struggled to balance soft demand against sufficient supply, with participants proceeding cautiously amid continued economic uncertainty. Despite earlier hopes for a demand recovery after the summer lull, no significant improvement in LDPE prices has been seen. Market players have been compelled to reduce their September pricing targets in response to subdued market sentiment, while buyers concentrated on immediate restocking needs. Fluctuating feedstock Ethylene prices have made buyers hesitant, leading many to adopt a cautious wait-and-see strategy. Some buyers had already fulfilled their September requirements during July and August, further limiting LDPE demand. This has resulted in a broad-based decline across the value chain, as Europe's industrial outlook remains bleak. Consequently, producers were forced to roll back the price increases initially announced earlier in the month, adjusting to the persistent weak demand conditions.

Meanwhile, over the past week, LDPE prices in Asian markets have come under pressure due to a combination of high supply levels and weak demand. October cargo bids were lower than usual, reflecting shrinking downstream margins that continue to impact the market negatively. Bleak demand for LDPE and limited support from downstream sectors have led to an abundance of readily available cargoes in the region. With demand remaining sluggish and the typical winter slowdown approaching, some derivative manufacturers are contemplating reducing their operating rates for the fourth quarter. Market sentiment in Southeast Asia has been particularly weak, as poor margins in the polyethylene sector further cloud the outlook. Overall, the Asian LDPE market is struggling as supply outpaces demand in a challenging economic environment. Furthermore, Typhoon Bebinca's landfall brought heavy rains, flooding roads, and causing widespread disruptions. The suspension of flights, and train services in several provinces during China’s three-day Mid-Autumn Festival has further strained the supply chain, delayed the transportation of goods, and added logistical hurdles to an already sluggish LDPE market.