The U.S. Low-Density Polyethylene (LDPE) market exhibited a stable price trend over the past week, supported by steady demand and consistent production costs despite escalating feedstock prices. Ethylene, a critical feedstock for LDPE, recorded notable price growth during the week, influenced by rising freight rates, which contributed to stable production expenses. As a result, the LDPE Film grade FOB Texas prices remained unchanged as of December 20, 2024. 

Despite steady demand from downstream sectors such as packaging, automotive, and construction, commodity resin trading demonstrated higher-than-average activity as buyers sought year-end deals. December, typically a slower month for domestic sales, has witnessed strong spot demand this year as buyers took advantage of discounted holiday pricing. To clear excess inventory, producers maintained competitive pricing, stimulating trading activity across both domestic and export markets.

LDPE trading momentum is expected to remain steady into the year’s final weeks, with a reduced volume of offers as sellers moderate their inventory clearance efforts. By Thanksgiving, a significant portion of surplus LDPE stock had been cleared through reseller channels, though intermittent sales extended into early December. Producers have successfully leveraged these opportunities to manage inventory levels efficiently, with additional transactions likely before the year’s close. 

Furthermore, a rise in upstream Crude Oil prices has contributed to stable LDPE costs. Geopolitical developments, such as discussions around further sanctions on Russia and Iran, have created uncertainty in the energy sector, potentially impacting crude oil supplies. While these factors have influenced feedstock costs, LDPE prices have remained steady amidst broader market adjustments. 

Shipping container rates from East Asia and China to the East Coast also spiked, as importers expedited shipments. Concerns about a potential restart of the U.S. Gulf and East Coast port strike, along with fears of tariff hikes under the incoming administration, have driven this preemptive import activity. Market analysts, including Drewry, anticipate further increases in transpacific shipping rates due to these actions. 

As per ChemAnalyst, as the year-end approaches, the LDPE market is positioned for continued steady to rising activity. Producers have made significant progress in reducing surplus inventory, and stable demand presents buyers with strategic opportunities for last-minute purchases. The trajectory of the LDPE market will likely hinge on feedstock price fluctuations, energy market developments, and shipping costs in the coming weeks. Amid these dynamics, LDPE continues to be a key focus for traders and buyers seeking advantageous deals while navigating evolving market conditions.