In early December 2024, Linear Low-Density Polyethylene (LLDPE) prices in both the U.S. and European markets maintained a stable trend, driven by a balanced supply-demand dynamic. In the U.S., despite rising cost of feedstock Ethylene and upstream Naphtha, LLDPE prices remained steady as producers managed inventory levels amid moderate demand from key sectors like packaging, automotive, and construction. Supply chain challenges persisted, yet sufficient availability offset logistical pressures. In Europe, LLDPE prices also held steady as subdued demand from the construction and automotive sectors balanced out regional supply levels. Germany, a key market, saw cautious market sentiment influenced by economic uncertainties, weak construction activity, and strategic year-end inventory management.  

In the first week of December, LLDPE prices in the U.S. remained stable due to a strategic balance between sufficient supply and moderate demand across key downstream sectors. Producers prioritized reducing excess inventory to counter the impact of rising feedstock costs, such as Ethylene and upstream Naphtha, which increased production expenses. Demand from packaging, automotive, and construction sectors remained cautious, with residential construction showing mixed signals. Although homebuilder sentiment reached a seven-month high in November, labor shortages and high material costs limited significant growth. On a positive note, the automotive sector saw a 9.8% year-on-year increase in sales, which helped maintain moderate LLDPE consumption. Logistics played a crucial role in market stability, with challenges like container congestion and labor unrest on the West Coast and Gulf ports complicating distribution. However, sufficient supply levels mitigated these logistical disruptions, ensuring price stability. Additionally, trade uncertainties, including proposed tariffs on imports, pose risks to exports, necessitating strategic planning to safeguard LLDPE market stability in early 2025.

Meanwhile, in Europe, the LLDPE market also exhibited price stability in early December due to a balance between adequate supply and subdued demand across core sectors. Germany, a key hub for LLDPE trade, experienced moderate-to-low demand, especially from the automotive and construction industries, which continue to face economic headwinds. Weak housing activity, exacerbated by rising interest rates and inflation pressures, limited demand for building materials, including LLDPE. Despite these challenges, sellers managed inventories carefully as year-end approached, avoiding oversupply. Passenger car sales increased slightly by 0.5% year-on-year in November, but electric vehicle demand fell significantly, impacting overall LLDPE consumption. Strategic inventory management, combined with sufficient material availability and cautious purchasing behavior, maintained the market's stability. The economic landscape, including rising Eurozone inflation and political uncertainties, further constrained a strong demand recovery, impacting LLDPE market across Europe.

The global LLDPE market is anticipated to witness a price decline in December 2024, driven by year-end destocking efforts as producers and traders reduce excess inventories. However, a recovery may occur at the start of 2025, supported by higher procurement activity and potential demand growth in China ahead of the Lunar New Year celebrations.