HDPE Prices Remain Steady in the US, While European Market Faces Upward Movement

High-Density Polyethylene (HDPE) prices witnessed a stable trend in the US while showing upward price movement in Europe in October 2023. The increasing feedstock Ethylene prices primarily drove the price trend along with sufficient demand from the downstream market. While spot resin trading picked up by the end of October, it did not match the robust pace seen in the US's first half of the month, which has maintained the overall price trend for the HDPE. Further, the material availability improved slightly, and some month-end opportunities from the downstream sectors, particularly packaging, construction, and automotive, have led to price adjustments, which impacted the price trend in both the US and Europe. 

During this month, the US HDPE prices experienced overall stability for the Injection molding and Blowmolding grade, while the Film grade HDPE surged in this period. The feedstock Ethylene has increased amid raised demand from the downstream industries, which has impacted the pricing of the material. International Polyethylene(PE) prices have been on the rise, influenced by volatile crude oil prices. However, when Crude oil prices declined earlier in the month, the upward momentum of PE prices slowed. Despite this, there was still solid offshore demand for US HDPE as the demand remained strong throughout the month as processors secured material for short-term needs and selectively restocked their inventories. Also, the export requests continued to flow, with significant volumes going to Europe, Mexico, and South America. This shift in demand occurred following a surge in buying, driven by concerns over geopolitical tension as the Hamas terrorist attack against Israel and the potential for regional conflict. Additionally, Baystar's newly commissioned PE unit in Texas is expected to increase the overall supply of PE, which is expected to impact the HDPE price in the future. 

The European HDPE prices increased by 2% in October for Injection grade FD Hamburg (Germany) owing to the increased feedstock Ethylene prices. As per the market sources, European PE producers have been facing huge cost pressure for a long time while the demand fundamentals have been low, causing damage to their profitability. To get relief from the prolonged cost pressures, manufacturers of PE Europe have raised their product prices during this period. As per the data, global Crude oil value has fluctuated frequently and floated on a higher level for the past few weeks, which has inclined HDPE prices in the European region. Further, demand for the product has not been improved in the meantime, but the higher production costs are to blame for these recent increments in HDPE prices.

According to ChemAnalyst, HDPE prices are forecasted to experience an upward trend due to consistent demand in downstream sectors and limited global market stock availability. The expected increase in feedstock Ethylene and upstream Naphtha prices could impact the direction of HDPE prices.