Polyethylene Prices Steady Amid Export Pressures and Production Shifts

Key Takeaways:

• Price Stability: Prices for HDPE and LLDPE remain largely stable in the domestic market, with small increases in LLDPE and no significant shifts for other grades.
• Supply and Demand Shifts: The PE market saw strong volumes into early November, with low-density and high-density PE in high demand, especially for film and blow molding.
• Competitive Global Pricing: Export prices for PE are being adjusted to match competitive rates from regions like China, where shipping costs have decreased.

Polymer Price: Current Polymer Prices by Grade

• LLDPE(+0.5) Rs.87/kg Ex Mundra/Bhiwandi.
• LDPE prices are around(±0) Rs.116kg Ex Mundra/Bhiwandi.
• HDPE PE100 natural (±0) Rs.89/kg Ex Mundra/Bhiwandi.
• HDPE PE100 black (±0) Rs.90/kg Ex Mundra/Bhiwandi.
• HDPE HM (±0) Rs.90/kg Ex Mundra/Bhiwandi.
• HD Blow Molding(±0) Rs.91/kg Ex Mundra/Bhiwandi

Supply and Demand Trends for Polyethylene

• The PE market remained active through the end of October and into early November, with strong transaction volumes recorded for the week, though slightly below the exceptional levels seen the previous week.
• Prime PE led activity at the trading desk, with low-density PE—both film and injection grades taking the spotlight, followed by high-density PE for blow molding, then injection, and finally linear-low-density PE for film and injection applications.
• Some producers reduced export PE prices to stay competitive with other regions, particularly China, where shipping costs have eased further.
• Meanwhile, spot prime prices in the domestic market held steady as producers paused the October price decline, which had seen prime grades drop by an average of $0.03/lb at the resin clearinghouse.

Polymer News: Global Market Influence on Polymer Pricing

• JG Summit Petrochemical has unexpectedly shut its Linear Low Density Polyethylene (LLDPE) Plant. The Plant is located in Batangas, Philippines.
• HDPE Film Prices assessed lower at US$ 975/MT, LLDPE assessed at US$ 1005/MT and LDPE assessed at US$ 1185/MT in Hong Kong Market.
• PP Injection/PP Raffia Prices assessed lower at US$ 950/MT and PPCP assessed at US$ 995/MT in Hong Kong Market.
• Traders quoted LLDPE Film Grade 2018H from Qatar at US$ 950/MT, T/T, CFR Huangpu basis for November, 2024 shipment.
• Traders quoted LDPE Film Grade FD0274 from Qatar at US$ 1135/MT, T/T, CFR Huangpu basis for November, 2024 shipment.
• Traders quoted HDPE Raffia from India at US$ 925/MT, T/T, CFR Qingdao basis for November, 2024 arrival.

Expert Opinion: Managing Competitive Pricing Challenges

It is expected that producers will face ongoing challenges despite stable pricing, as high upstream inventories are likely to continue weighing on the market. Additionally, softer export pricing may create further competitive pressures, making it essential for producers to carefully manage supply and demand dynamics in the coming period.