The Linear Low-Density Polyethylene (LLDPE) market in the United States and Europe has experienced a significant upward price trend in the week concluding on January 24, 2025. This upsurge in prices was driven by multiple factors including increased demand, severe weather disruptions, and rising feedstock costs.

In the United States, the LLDPE Film Butene-based grade FOB Texas saw a 1.8% increase in prices, fueled by a surge in demand, particularly from the packaging and consumer goods sectors. This coincided with severe weather conditions caused by Winter Storm Enzo, which struck the Gulf Coast region. The storm brought record snowfall and extreme cold, causing major disruptions to petrochemical production and resin manufacturing facilities in Texas and Louisiana. Several plants in the region, already offline for scheduled maintenance, were further affected by the freezing temperatures, tightening the supply situation. These supply chain disruptions have directly impacted the availability of LLDPE, further pushing up prices as producers halted fresh offers in response to the uncertainty.

Adding to the supply challenges, LyondellBasell declared a force majeure on its LLDPE production unit in Morris, Illinois, starting January 20, 2025, due to the cold weather. This plant has a production capacity of 26,667 tonnes per month and is expected to remain shut down for approximately 12 days. Similarly, Chevron Phillips Chemical Company also declared force majeure at its Sweeny Facility in Texas on January 22, 2025, impacting the production of 41,667 tonnes per month of LLDPE. This facility is expected to restart production after around 10 days of downtime.

In Europe, LLDPE prices have also seen an upward trend, with Film grade FD Hamburg (Germany) rising by 2%. The surge in feedstock prices, combined with higher production costs, has led to increased pressure on LLDPE prices. Restocking activities in the past week temporarily bolstered demand, but the overall market remains weak. End-user industries like construction and packaging continue to face inflationary pressures, limiting their purchasing power. At the same time, persistent domestic production issues, including plant outages and lower operating rates, have further constrained LLDPE supply in Europe.

The US and European LLDPE markets are expected to see price increases in the near term due to disruptions caused by winter storms in the US and rising feedstock costs in Europe. The storm in the US resulted in significant plant shutdowns and port closures along the Gulf Coast, leading to a tightened supply and pushing prices upward. In Europe, the rise in Ethylene prices, combined with ongoing supply constraints, is driving further increases in LLDPE prices. The market is likely to remain volatile through February 2025, influenced by fluctuations in feedstock prices and continued supply challenges. These factors are putting pressure on the LLDPE market, with prices expected to continue rising in both regions.