LLDPE Market Faces Supply Pressure Amid Weak Demand
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LLDPE prices in January 2025 show upward trends due to tight supply pressures, with 2 MFI Non-Slip priced at Rs. 89190/MT. However, downstream demand remains weak. Key industry developments include maintenance shutdowns in China and Saudi Aramco's propane price cuts. Experts predict continued challenges due to subdued demand and tight cash flows.
Key Highlights:
- Price Trends: LLDPE grades exhibit strong price trends, with prices such as Rs. 89190/MT for 2 MFI Non-Slip and Rs. 96590/MT for Roto Moulding.
- Market Insights: Supply pressures drive prices higher despite weak downstream demand and cautious purchasing trends.
- Industry Updates: Maintenance shutdowns in China's PP and MEG units and Saudi Aramco's propane price cut to $625/MT impact the market.
- Expert Outlook: The market outlook for linear PE suggests a continued strong trend due to tight supply and high supply pressure.
LLDPE Price Trends: January 2025 Updates
- 2 MFI Non Slip: Brand - HMEL, Grade - F0218L, Location - Ahmedabad, Make Type - Prime, Price - Rs. 89190/MT.
- Extrusion Coating: Brand - HMEL, Grade - E0725L, Location - Ahmedabad, Make Type - Prime, Price - Rs. 98760/MT.
- 1 MFI Slip: Brand - HMEL, Grade - F0120L, Location - Ahmedabad, Make Type - Prime, Price - Rs. 88870/MT.
- Roto Moulding: Brand - HMEL, Grade - R0536L, Location - Ahmedabad, Make Type - Prime, Price - Rs. 96590/MT.
Market Demand and Supply Insights
- The trend for LLDPE products remains strong, with tight supply and high supply pressure, leading to a strong upward price trend.
- However, there is limited downstream demand support, and while production capacity from new facilities is gradually increasing, the overall demand for PE remains weak.
- Despite these factors, the supply side is expected to increase as more facilities are restarted, but the weak demand continues to limit the support for the market.
- The Virgin LLDPE film market is experiencing a slowdown, with cautious purchases being made. Some players are hopeful for slight improvements following the next update from RIL, but overall, inventory levels remain stable.
Key Industry News and Developments
- Jinneng Science and Technology has shut its No.1 Polypropylene (PP) Line on 31st December, 2024 for maintenance work in Qingdao, China.
- Sanjiang Fine Chemicals has shut its Monoethylene Glycol (MEG) Unit in Jiaxing, Zhejiang, China.
- Bora Lyondellbasell Petrochemical has restarted its Linear Low-Density Polyethylene (LLDPE) Unit after maintenance in Panjin, China.
- Saudi Aramco has reduced its January Propane contract prices in Asia by US$ 10/MT, now assessed at US$ 625/MT,.
- Butane contract prices by US$ 15/MT, now assessed at US$ 615/MT from its December settlement levels.
Expert Opinion: Market Outlook and Challenges
- The market outlook for linear PE (Polyethylene) suggests a continued strong trend due to tight supply and high supply pressure. The limited availability of linear products has resulted in a notable upward price movement.
- Despite this strength, there are some underlying concerns regarding weak downstream demand support and the lack of significant order follow-ups from industries such as packaging film.
Daily Market Report
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