The Linear Low-Density Polyethylene (LLDPE) market witnessed a stable price trend across Asia and the US in the last week of February. The price trend in the Asian market was influenced by the sufficient inventory levels in the regional markets, while demand remained moderate. Meanwhile, the US LLDPE market experienced eased downstream demand than expected in this month. Further, the cost of feedstock Ethylene costs and supply dynamics have impacted the product pricing in both regions. 

Key Takeaways:

• Chinese LLDPE is supported by stable Ethylene costs and moderate demand.
• LLDPE imports from the Middle East may be impacted by Ramadan, influencing prices in Asian markets. 
• The LLDPE market witnessed decreased demand in the US from the downstream sectors. 
• Growth in construction spending has been slowing due to high interest rates and the potential for new tariffs, further affecting LLDPE demand. 

In the last week of February, the LLDPE market in the Asian region experienced a stable price trend as the price for Chinese LLDPE Film extrusion grade FOB Shanghai remained unchanged at USD 1088/MT. The product price trend was supported by the steady feedstock ethylene costs meanwhile upstream Naphtha eased due to declining Crude oil prices. Furthermore, the regional market witnessed increased product inventory levels which has been a dominant factor, in keeping the prices from rising. On the demand side, plastic film applications have increased which has increased the demand for the product, particularly in China. Thus, firm demand from the downstream has kept the prices stable despite increased inventory.

ChemAnalyst predicts that the LLDPE may witness an upsurge in the price trajectory as the demand from the downstream packaging and construction sector is expected to rise. Further, the feedstock Ethylene costs are anticipated to rise which might increase production costs for the material. Moreover, the imports from the Middle Eastern region, which possibly will be influenced during Ramadan,  might influence the prices in the Asian markets.

Meanwhile, a similar stable trend was observed for LLDPE prices in the USA as the market dynamics remained unchanged from the previous week. Consequently, the LLDPE Film Butene-based grade FOB Texas (USA) was quoted as USD 1160/MT this week concluding on February 28, 2025. The demand for the material remained low this month from the downstream industries, particularly automotive and construction. Meanwhile, the downstream packaging sector maintained stable demand.

In February 2025, preliminary figures, which include estimates for GM, Stellantis, Tesla, and other brands, showed a 2.3% decrease in total vehicle sales on a year-over-year basis. This eased demand from the automotive sector further influenced the LLDPE demand.  Further, growth in construction spending has been decelerating due to the strain of rising interest rates and the looming possibility of new tariff increases. Moreover, market participants remained cautious as they were making only enough purchases to meet immediate needs.

As per ChemAnalayst, the LLDPE prices in the USA are expected to ease further in March 2025 following the current trend. The demand from the downstream industry is anticipated to remain subdued which might influence the prices in the region. Further, the US may proceed with its proposed tariffs in March which might impact the supply chain of the regional market.