LDPE witnessed divergent trends across the global markets amid varied regional market dynamics as the Asian market witnessed stability, European LDPE prices surged, meanwhile, the US LDPE prices showed a contradictory trend as prices eased in the US in the last week of February. Market conditions varied due to fluctuating demand, supply-side pressure, and feedstock price movements. 

Key Takeaways:

• The global LDPE market experienced mixed trends, with prices remaining stable in Asia, surging in Europe, and easing in the US.
• China's LDPE prices remained stable, supported by steady Ethylene prices and seasonal plastic film demand.
• In Europe, higher import prices, and supply constraints from the US and the Middle East pushed prices higher. 
• In the US, LDPE demand remained below expectations, with high converter inventories and minimal restocking. 

In Asia, LDPE film faced weak demand and pricing due to high local inventories from recent plant startups. Despite this, sellers remained cautiously optimistic, expecting potential price support from plant shutdowns between February and June. Chinese LDPE prices stayed stable, backed by steady feedstock Ethylene costs. While inventory pressure persists, demand for plastic film is entering its peak season, offering some support. However, with both supply and demand rising, any price increases for PE are expected to be limited, with no major market shifts anticipated.

In Europe, LDPE prices rose by 0.8% for Film grade FD Hamburg (Germany), driven by stronger import offers, currency fluctuations, and supply constraints from US and Middle Eastern maintenance shutdowns. Despite weak demand, sellers remained firm on their offers, expecting stable pricing in March and fewer low-priced spot volumes. Seasonal restocking and a higher price floor on imports further supported the market. Capitalizing on these factors, producers and sellers pushed for steeper PE price increases to improve margins, despite the overall sluggish demand.

In the US, polymer demand in February remained significantly lower than usual, impacting LDPE prices, which eased by 2.4% for Film grade FOB Texas. Most converters' warehouses are well stocked due to sluggish demand across key end-use sectors, prompting them to purchase only what’s needed for immediate production. While stock replenishment began in January, rising prices in February slowed the trend. 

As per ChemAnalyst, the global LDPE market is expected to experience an upward trend in the coming months, primarily driven by strong demand in key sectors like packaging and agricultural film applications. Rising feedstock Ethylene prices, along with seasonal restocking and planned plant shutdowns leading to tighter supply, are likely to support this bullish outlook. However, factors such as supply chain disruptions or broader economic uncertainties could temper the rate of price growth.