Low Density Polyethylene (LDPE) prices journey southward in Europe

This week, LDPE prices slipped in the European region.

An industry source in Europe informed a Polymerupdate team member, “Persistently subdued demand conditions and an oversupply situation prevailing in the region compounded by competitively priced import cargoes from overseas suppliers is exerting a bearish pressure on prices. Weaker upstream ethylene values also contributed to the downfall in prices. The purchase pulse has slowed down with buyers making need-based purchases and preferring to maintain minimal inventories owing to muted demand sentiments while a few others are operating their plants at reduced rates as weak economic fundamentals comprising inflationary pressures and recession continue to limit end-user demand. Meanwhile, a persistently weak demand sentiment has resulted in inventories piling up at sellers’ warehouses, with a large number of market players struggling to offload their rising inventories even at attractive prices.”

The source added, “Producers in the region are focused on running their plants at curtailed capacity levels which is near minimal operational levels, in order to bring a balance in market fundamentals. Furthermore, most of the buyers reportedly adopted a cautious approach as they await the ethylene feedstock contract price settlement to gauge the market mood in the near to medium term.”

In the spot markets, LDPE prices were assessed at the Euro 915-925/mt FD Northwest Europe mark, a week on week decrease of Euro (-30/mt).

In the contract markets, General Purpose LDPE grade prices were assessed at the Euro 1680-1685/mt FD NWE Germany and FD NWE Italy levels, both dropped by Euro (-20/mt) from the previous week. LDPE General Purpose grade prices were assessed at the Euro 1680-1685/mt FD NWE France levels, down week on week by Euro (-20/mt). Meanwhile, LDPE grade prices were assessed at the GBP 1450-1455/mt FD NWE UK levels, a fall of GBP (-10/mt) from last week.

FCA Antwerp LDPE General Purpose film prices were assessed at the Euro 900-930/mt levels, a week on week decline of Euro (-30/mt).

Ethylene spot prices on Thursday were assessed at the Euro 610-620/mt FD North West Europe levels, lower by Euro (-30/mt) from the previous week.

Feedstock ethylene contract price for June 2023 settled at the Euro 1160/MT FD North West Europe levels. This price represents a sharp fall of Euro 80/MT from its May 2023 settlement levels.