LLDPE Prices in the USA and Europe Sustain Stability by the Third Week of June 2023

The European and the US market has witnessed a stable price trend of Low-Linear Density Polyethylene (LLDPE) over the week ending on 23rd June 2023. Stability in prices of LLDPE was observed following a period of price decrease in the previous months in the global market. The demand from downstream industries of LLDPE, particularly packaging, construction, and automotive industries, has been steady in the US domestic market. The European nations have also witnessed steady demand from downstream industries of LLDPE.

The feedstock Ethylene prices in the US have rolled over this week, leading to stable prices of LLDPE. However, upstream Crude oil has shown a marginal surge in costs. Moreover, the German market has shown a declining trend in the cost of feedstock Ethylene. Nevertheless, the prices of LLDPE remained stable due to steady demand from the domestic market.

Plant shutdown for feedstock Ethylene was reported in June in the US and Germany. BASF was reportedly shut down for maintenance turnaround from 9th June 2023 for two weeks. The plant is located in Ludwigshafen in, Germany, with a plant capacity of 620,000 MT/year. Another feedstock Ethylene plant in the USA, Chevron Philips Chemical, has an unplanned shutdown on 14th June 2023. The plant is located in Cedar Bayou, Texas, in the US, with a capacity of 1.725 million mt/year.

Although prices of LLDPE remained stable in the US and European markets, the prices have shown a declining trend in the Asian market, particularly China, amid sluggish demand. The upstream Ethylene costs have also followed a downward trajectory this week, ending on 23rd June 2023. Petro China Lanzhou plant shutdown was reported in Mid-June for maintenance shutdown; however, the shutdown duration cannot be ascertained. The plant is located in Gansu in, China, with a capacity of 240,000 mt/year. Another plant in China, Zhejiang Xingxing New Energy, has been reported to shut down in Mid-June for a maintenance turnaround. The plant is located in Jiaxing, Zhejiang, in China, with a capacity of 300,000 MT/year.

As per ChemAnalyst, the price of LLDPE is expected to surge in the US market in the third quarter of the year due to increased demand from downstream packaging and construction industries. The upstream Ethylene prices are also expected to improve in the US, leading to an upward price trend for LLDPE. A similar incline in the costs of LLDPE can be witnessed in the third quarter of the year in the European nations due to increased demand from downstream industries and a surge in upstream Ethylene prices. The global economy is also expected to enhance as the inflation rate is expected to improve in the upcoming months leading to a rise in demand.