Although the October ethylene price was unchanged, HDPE, LLDPE and LDPE prices are expected to decline as early as next week. The reasons are weak market conditions and persistently low converter activity. Only a few companies report larger polyethylene purchases when they receive new, significant production orders.
On the export market, US polyethylene prices may continue to fall through the end of October. In addition, the 6.5% import duty on US polyethylene into Europe may be lifted in November, which could force price cuts among European suppliers as well.
Market situation:
- Ethylene – the October contract price remained unchanged versus September, in line with the expectations of producers and buyers;
- HDPE – demand at the start of the month was minimal. Market participants were waiting for offers from producers, still trading at last month’s prices;
- LDPE – early-month demand was weak; however, several traders reported the first new orders for finished goods in months, especially in the LDPE film segment;
- LLDPE – unlike other polyethylene grades, prices fell compared with the end of the previous month;
- USA–Serbia – the US Treasury moved to 8 October the date for imposing sanctions on the Serbian refinery NIS, which owns producer HIP-Petrohemija (capacity of 90,000 t/yr of HDPE and 60,000 t/yr of LDPE);
- Buying activity – remained low, partly due to waiting for producer offers and the participation of many market players in an industry conference in Warsaw.
