Prices of High Density Polyethylene (HDPE) Expected to Follow a Downward Trajectory in the USA

The prices of High Density Polyethylene (HDPE) have been quite stable since the past five months with mild fluctuations. The prices for the month of October were assessed at USD 1770 per tonne which dropped slightly in the first week of November to reach USD 1740 per tonne. The prices for the month of November have remained stable till now. The prices are expected to fall during the upcoming month due to dropping prices of ethylene in the USA and declining demand from the packaging sector.

The prices are expected to fall due to the fall in the prices of feedstock ethylene which has been increasing in supply due to easier cargo availability and high inventory. Apart from this the demand from the packaging sector is expected to become stagnant since the demand for online orders packaging is falling after the easing of coronavirus related lockdowns.

HDPE is one of the widely used polymers in range of end-use applications. It is versatile and has high mechanical properties. HDPE is an ideal preference in the automotive and construction industry as it can be easily wielded and molded owing to its high chemical resistance and tensile strength. Ideal advantages of HDPE offered over other alternatives are its recyclability and sustainability that limits the extent of environmental pollution.

Different grades of HDPE such as blow molding, injection molding, pipe extrusion, film and sheet extrusion, profile molding can be produced using a range of techniques. Large-scale commercial production of HDPE is achieved by catalytic polymerization of Ethylene in a slurry, gas phase or solution reactor. Properties in different grades of HDPE are determined by alternating the process conditions and selection of the desired catalyst. The global demand for HDPE stood at around 20 million tonnes in 2020 and is expected to grow at a CAGR of 3.5% during the upcoming years till 2030.

As per ChemAnalyst, “the prices of HDPE are expected to decline given the bearish demand fundamentals and falling prices of the feedstock ethylene. The prices are expected to gain momentum once the demand picks up in the export market. The prices of feedstock ethylene are also not expected to rise for the upcoming month therefore, the prices will follow a downward trajectory in the upcoming month. The prices are expected to reach USD 1700 per tonne mark till the first week of December.”