Record Price Spread Between Natural and Color HDPE Highlights Market Imbalance
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The price gap between natural and color HDPE has surged to a record 85.07 cents per pound, driven by strong demand for natural HDPE in packaging. Meanwhile, color HDPE demand remains sluggish due to weak construction activity. Market uncertainty persists, though increased recycled content requirements could further boost natural HDPE prices.
Key Highlights
- Record Price Gap: Natural HDPE trades at 90.88 cents/lb, while color HDPE remains below 6 cents/lb, marking a historic spread.
- Weak Demand for Color HDPE: Construction slowdown and cautious buyers keep prices near record lows.
- Market Updates: Major HDPE plants in China have shut down for maintenance, impacting supply.
- Expert Outlook: The price gap will persist unless color HDPE demand recovers, while natural HDPE may see further gains.
HDPE Market Trends & Price Movements
- HDPE prices varied across different locations, with HDPE Films priced at ₹84,680/MT in Ahmedabad, while HDPE IM was available at ₹92,510/MT in Bhiwandi.
- HDPE Raffia in Bhiwandi was quoted at ₹98,620/MT, whereas HDPE Pipe in Ahmedabad stood at ₹86,210/MT.
- HDPE PE100 Natural in Mundra was priced at ₹95,320/MT, while HDPE PE100 Black in Mumbai was available at ₹93,000/MT.
- In the LLDPE market as of 5th March 2025, LLDPE Extrusion Coating in Ahmedabad was quoted at ₹97,760/MT, and LLDPE Roto Moulding at ₹1,07,370/MT.
- LLDPE 1 MFI Non-Slip in Delhi was priced at ₹97,940/MT, while LLDPE Films in Ahmedabad were at ₹96,750/MT.
- LLDPE 1 MFI Slip in Delhi stood at ₹97,440/MT, and LLDPE 2 MFI Non-Slip in Bhiwandi was priced at ₹97,470/MT.
Supply & Demand Dynamics in the Polymer Industry
- As per the Plastics recycling update, the price gap between natural and color HDPE bales surged to a record high of 85.07 cents per pound in February, marking the widest spread recorded in the past seven years in the European market.
- This divergence is largely driven by the steady demand for natural HDPE, which remains highly versatile due to its ability to be dyed in various colors. In contrast, mixed-color HDPE, which is primarily used in black or grey applications like drainage pipes, has seen sluggish demand, particularly during the winter months when construction activity slows.
- Despite the overall trend of narrowing spreads seen in late 2023 and early 2024, where the gap between the two grades hovered around 8-11 cents, the current sharp increase signals ongoing structural imbalances in the market.
- Major buyers of color HDPE, such as Advanced Drainage Systems, have expressed uncertainty about demand recovery in the upcoming peak construction season, further pressuring prices.
- Since December, color HDPE bales have been priced under 6 cents per pound—significantly lower than the 2024 peak of 23.94 cents in May and not far from their historic low of 3.61 cents in May 2020.
- Meanwhile, natural HDPE remains strong at 90.88 cents per pound, approaching its all-time high of 108.44 cents set in September 2021. The increasing push for recycled content goals in packaging continues to support its demand, reinforcing the stark contrast between the two grades.
Polymer News: Key Industry Developments & Global Market Updates
- Shanghai Golden Phillips shut down its High-Density Polyethylene (HDPE) Unit on 4th March 2025 for maintenance work. The Unit is located in Shanghai, China, with a production capacity of 140,000 Tons/Year.
- Zhejiang Petroleum & Chemical (ZPC) has shut down its No.1 High Density Polyethylene (HDPE) Unit for maintenance work. The Unit is located in Zhoushan, China, with a production capacity of 300,000 Tons/Year.
- Traders quoted HDPE Film from Saudi Arabia at US$ 885/MT, T/T, CFR Shanghai basis for March 2025 arrival.
- Traders quoted HDPE Injection from the U.S.A. at US$ 855/MT, T/T, CFR Huangpu basis for March 2025 shipment.
- Traders quoted HDPE Raffia from India at US$ 905/MT, T/T, CFR Qingdao basis for March 2025 arrival.
- Traders quoted HDPE Blow Grade 6200 from the U.S.A. at US$ 865/MT, T/T, CFR Huangpu basis for March 2025 shipment.
Expert Insights & Future Price Expectations
- It is expected that the price spread between natural and color HDPE in the European market will remain elevated in the near term unless demand for color HDPE improves significantly with the arrival of the spring construction season.
- The uncertainty surrounding infrastructure and drainage projects may continue to suppress prices for mixed-color HDPE. However, if demand for recycled-content packaging continues to grow, natural HDPE could see further price increases, maintaining the wide gap between the two materials
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