For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for Recycled Linear Low-Density Polyethylene (R-LLDPE) faced a challenging environment, shaped by various supply and demand factors. The market struggled with a persistent oversupply, as production rates remained steady, leading to high inventory levels. This surplus outpaced the relatively weak demand from sectors like packaging and textiles, resulting in a competitive market where pricing adjustments were common among suppliers. The cautious approach of buyers, favouring spot purchases over long-term commitments, further limited market activity.
Market sentiment remained conservative throughout the quarter, reflecting broader economic uncertainties. Efforts by suppliers to stimulate demand through price incentives saw limited success, as downstream industries remained hesitant to make large purchases. Additionally, the availability of recycled materials continued to be high, adding to the supply pressures and challenging efforts to stabilize prices. The U.S. market, in particular, reflected these dynamics, with fluctuating demand from key industries impacting overall market trends.
As Q3 2024 progressed, the R-LLDPE market conditions highlighted the ongoing struggle to balance supply and demand. Despite some signs of stabilization towards the end of the quarter, the market lacked significant upward momentum. The influence of competition from virgin polyethylene and the broader economic context further complicated the outlook. The quarter concluded with a generally bearish sentiment, emphasizing the need for demand recovery to support a more balanced market in the upcoming periods.
APAC
In Q3 2024, the Recycled Linear Low-Density Polyethylene (R-LLDPE) market in the APAC region faced a challenging pricing environment, marked by a gradual decline. The quarter began with relatively stable prices but soon saw a downward shift influenced by multiple factors. Weak demand from key sectors like packaging and construction played a significant role in driving prices lower, especially in China, which experienced the most notable price adjustments within the region. The market was further impacted by oversupply issues, as steady production levels outpaced demand, creating downward pressure on prices. Seasonal fluctuations and disruptions in the supply chain, particularly affecting raw material availability, compounded the challenges faced by market participants. While supply remained consistent, the sluggish demand made it difficult to maintain pricing levels. Despite efforts to stabilize the market, the quarter concluded with a lower pricing sentiment, as R-LLDPE Extrusion Grade traded at 765 USD/MT on an FOB Tianjin basis. The overall trend highlighted the region's struggle to achieve a balance between supply and demand, with the market ending on a subdued note due to prevailing economic uncertainties and reduced downstream activity.
Europe
In Q3 2024, the Recycled Linear Low-Density Polyethylene (R-LLDPE) market in Europe showed a positive trend in pricing, supported by a mix of demand and supply factors. The market experienced steady growth, particularly due to robust demand from industries such as packaging and construction. This demand, coupled with a focus on sustainable and eco-friendly materials, helped bolster the market sentiment, leading to a favourable pricing environment. Germany stood out within the region, reflecting the overall upward trend in prices. Market dynamics were further shaped by improved supply chain management, ensuring consistent availability amidst rising demand. Despite a minor decrease compared to the same quarter last year, the market managed to maintain a steady quarter-on-quarter increase, showcasing resilience amidst broader economic uncertainties. The latter half of Q3 2024 saw a stabilization in prices, with levels holding steady between August and September. As the quarter concluded, R-LLDPE Translucent Pellets were priced at 1,190 USD/MT on an FD-Hamburg basis, reflecting the steady demand and balanced supply conditions that characterized the European market. This positive sentiment highlighted the region's capacity to adapt to evolving market needs, driving a consistent upward trajectory throughout the quarter.
MEA
In Q3 2024, the Recycled Linear Low-Density Polyethylene (R-LLDPE) market in the MEA region faced a downward pricing trend, shaped by multiple market pressures. The decline was influenced by reduced demand from key sectors such as packaging and construction, which are major consumers of R-LLDPE. The economic environment remained challenging, prompting businesses to adopt competitive pricing strategies to drive sales amidst sluggish demand. Additionally, the impact of global market uncertainties and weaker export demand contributed to the negative market sentiment. Saudi Arabia, as a significant player in the region, witnessed notable price adjustments. The market dynamics here mirrored the broader regional trend, with pricing under pressure due to softer demand conditions. Although the market maintained relative stability in earlier periods, the latter half of Q3 experienced further price declines, reflecting ongoing challenges in maintaining price levels. As the quarter ended, R-LLDPE Blown Film Spot prices stood at 780 USD/MT on an Ex-Riyadh basis, highlighting the overall bearish outlook for the quarter. Despite efforts to stabilize, the market faced headwinds that kept pricing under downward pressure.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Recycled Linear Low-Density Polyethylene (R-LLDPE) in North America demonstrated notable stability. This quarter exemplified a balance in supply-demand dynamics, primarily due to consistent availability of raw materials and steady demand from key downstream sectors such as packaging, construction, and automotive.
Despite moderate supply constraints impacting the broader region, enhanced recycling efforts and stable upstream prices for virgin LLDPE contributed to maintaining price equilibrium. Focusing specifically on the USA, where the most significant price fluctuations were observed, the overall market sentiment remained stable. The trends indicated a robust demand from sectors prioritizing sustainable materials, which sustained R-LLDPE prices. Seasonality factors such as increased demand during peak summer sales were offset by efficient supply chain operations, ensuring no drastic price changes. This quarter’s pricing stability starkly contrasts with the same quarter last year, which saw a substantial decline, attributed to previous market volatilities.
Compared to the previous quarter of 2024, the market conditions showed improvement, reflecting sustained demand and balanced supply dynamics. The comparison between the first and second halves of Q2 2024 revealed no significant price difference, underscoring the stable market conditions. Overall, the pricing environment for R-LLDPE in the USA during this quarter has been stable, driven by balanced supply-demand dynamics and supportive market conditions.
APAC
In Q2 2024, the Recycled-Linear Low Density Polyethylene (R-LLDPE) market in the Asia-Pacific (APAC) region experienced a subtle upward price trend. Several key factors influenced this development. Firstly, heightened demand from key downstream sectors, particularly packaging and construction, bolstered market prices. Stable upstream prices for virgin LLDPE and consistent supply of post-consumer bottles helped maintain the balance despite rising transportation and logistics costs. Logistical challenges and regional economic activities further contributed to price stabilization. Focusing on China, the region exhibited the most significant price fluctuations, underscoring its influential market dynamics. The overall trend was characterized by robust demand from packaging, construction, and automotive industries, reflecting a seasonal uptick as companies prepared for peak summer sales. This seasonality, coupled with stable production rates and moderate supply constraints, facilitated a steady price increase. Compared to the same quarter last year, prices reflect a notable decrease due to previous oversupply conditions, while a 3% increase from the prior quarter in 2024 indicates market recovery. The first half of the quarter saw a moderate rise, with a 2.2% increase noted in the second half, highlighting sustained demand and steady market sentiment. As of the quarter’s end, the price settled at USD 805/MT for R-LLDPE-Extrusion Grade on FOB - Tianjin basis. Despite minor fluctuations, the overall pricing environment this quarter was stable, marked by an increasing trend driven by consistent demand and strategic supply chain management.
Europe
The second quarter of 2024 has seen a noteworthy upward trajectory in the pricing of Recycled Linear Low-Density Polyethylene (R-LLDPE) across Europe. This quarter has been characterized by several influential factors that have collectively driven prices higher. Key among these reasons is a robust demand from downstream industries such as packaging, construction, and automotive, spurred by an increasing shift towards sustainable materials. Additionally, constrained supply dynamics have played a crucial role in price elevation, with recycling and collection efforts struggling to keep pace with demand. Furthermore, fluctuations in feedstock prices, particularly ethylene, have contributed to higher production costs, feeding into the overall price increases for R-LLDPE. In Germany, which has experienced the most significant price changes, these factors have been particularly pronounced. The German market has demonstrated a consistent increasing trend, with the pricing environment shifting positively due to sustained demand and ongoing supply constraints. Seasonality has also influenced market dynamics, with peak summer sales preparation in the packaging sector exerting additional upward pressure. The correlation in price changes reveals a significant decrease compared to the same quarter last year, indicating a recovery phase. From the previous quarter of 2024, prices have surged by 9%, reflecting a strong market rebound. A comparison between the first and second half of the quarter shows a 2.1% increase, underscoring steady demand growth and supply stabilization. Concluding Q2 2024, the price of R-LLDPE Translucent Pellets FD-Hamburg in Germany stands at USD 1,165 per metric ton, marking a positive pricing environment that has been predominantly stable but with clear upward momentum. This increase reflects the overall market sentiment of strong demand and constrained supply driving the pricing scenario in a favourable direction for suppliers.
MEA
In Q2 2024, the Recycled-Linear Low Density Polyethylene (R-LLDPE) market in the Middle East and Africa (MEA) region experienced a nuanced pricing landscape, marked by several influential factors. Primarily, the market was buoyed by robust demand from the packaging and film industries, which drove prices upward. Additionally, logistical challenges and rising transportation costs further contributed to the price increase, reflecting a positive market sentiment. Consistent supply of raw materials was maintained, yet the moderate demand from downstream sectors such as construction and automotive added complexity to the pricing dynamics. Focusing on Saudi Arabia, where the most significant price changes were observed, the market trends indicated a steady increase in prices. The quarter saw a 2% price increase from the previous quarter in 2024, contrasted by a substantial decrease compared to the same quarter last year. This fluctuation highlights the sensitivity of R-LLDPE pricing to external market conditions and internal supply chain efficiencies. Notably, the second half of the quarter experienced a slight 1.5% price increase over the first half, underscoring the gradual upward trend. The price stabilized at USD 810 per metric ton for R-LLDPE-Blown Film Spot Ex-Riyadh at the end of the quarter, reflecting an overall stable yet upward pricing environment. This stability, despite seasonal variances and international market pressures, indicates the resilience of the Saudi Arabian market. The consistent price growth throughout Q2 2024, despite moderate demand and supply constraints, suggests a cautiously optimistic market outlook for R-LLDPE in the region.
For the Quarter Ending March 2024
North America
In North America, the R-LLDPE (Recycled Linear Low-Density Polyethylene) market in the first quarter of 2024 showcased a pattern of stability with moments of mild volatility. The market faced similar pressures as seen in Europe, such as fluctuations in raw material costs and supply chain challenges.
At the start of the quarter, the market saw prices that were reflective of a steady demand, mirroring the global trends of a cautious but consistent need from the packaging and construction sectors. As the quarter progressed, despite the fluctuations in upstream costs due to the volatile oil market and disruptions in supply chains, particularly those impacted by geopolitical tensions, prices remained relatively stable.
The price stability in March was notable, considering the potential for disruption from both international and domestic factors. The prices for R-LLDPE remained consistently around the same point, unaffected by the sporadic increases in feedstock costs or the moderate demand from the downstream markets. Overall, the North American R-LLDPE market in Q1 2024 demonstrated a level of resilience, ending the quarter on a stable note. This was due to a combination of sufficient inventory levels, strategic stockpiling to counteract supply uncertainties, and a market that has become adept at navigating through a mix of subdued demand and supply chain intricacies.
APAC
The first quarter of 2024 has been characterized by increasing prices for Recycled-Linear Low-Density Polyethylene (R-LLDPE) in the APAC region. Several factors have influenced market prices, including enhanced demand from various end-use industries such as packaging and automotive, coupled with limited supply due to operational adjustments in production facilities. China, in particular, has witnessed volatile price in the R-LLDPE market. The overall trend in the country has been positive, with prices showing a 1% increase from the previous quarter. The percentage change from the same quarter last year, however, has been negative at -17%.
In terms of seasonality, the first half of the quarter recorded a 3% price increase compared to the second half. This can be attributed to factors such as increased demand and limited supply during the early part of the quarter. As of the latest quarter-ending price, R-LLDPE-Extrusion Grade in China is priced at USD 785 per MT on FOB - Tianjin basis. This reflects the overall pricing environment in the R-LLDPE market during the first quarter of 2024.
Europe
The European R-LLDPE (Recycled Linear Low-Density Polyethylene) market in the first quarter of 2024 began with a slight uptick in prices but soon faced various pressures leading to a fluctuating price landscape in Germany. The quarter started with R-LLDPE translucent pellets at a price of USD 1090 per MT. A brief surge in spot purchasing activities drove the price up in mid-January, but this was counterbalanced by a downtrend influenced by a reduction in the cost of bottle scrap and a cautious buying sentiment due to reduced demand in key sectors like packaging and construction. Subsequently, the prices took a downward turn in February as buyers resisted higher costs, and market off-takes slowed. Despite this dip, the market managed to recover slightly in March, with the prices settling at USD 1110 per metric ton for the rest of the month. This recovery was attributed to a cautious increase in demand and spot purchasing activities, despite ongoing challenges such as supply chain disruptions in the Middle East and subdued demand from downstream industries. The pricing in March stayed unchanged, reflecting a market attempting to find balance amidst cautious demand, adequate supply levels, and a backdrop of geopolitical tension impacting supply routes. Throughout Q1, the European R-LLDPE market demonstrated resilience, ending the quarter with stable prices despite the pressures faced.
MEA
In the first quarter of 2024, the Middle East and Africa (MEA) market for Recycled Linear Low-Density Polyethylene (R-LLDPE) experienced relatively stable dynamics, particularly in Saudi Arabia. The market kicked off the year with consistent pricing, maintaining a steady rate at USD 780 per MT until mid-February. During this period, several factors such as subdued demand from the packaging and construction sectors and high availability of scrap LLDPE products influenced the market, keeping prices unchanged. In mid-February, prices saw a slight increase, influenced by rising costs in feedstock LLDPE and upstream Ethylene. These increases were attributed to tight availability and increased demand within the Polyethylene industry. The price further climbed by the end of February, marking the highest price for the quarter. This upward trend was driven by heightened production costs and a moderate inquiry level from the packaging industries. Throughout March, the price remained constant at USD 795 per MT. Despite potential disruptions from ongoing regional tensions and shipping issues in the Red Sea, the market-maintained stability. This period saw a resurgence in purchasing activities, spurred by improved market sentiment and stabilization in upstream prices. While overall market conditions were subdued, there was a noticeable shift towards stabilizing supply chains and replenishing stocks, which helped maintain consistent pricing. Overall, the MEA R-LLDPE market in the first quarter of 2024 was characterized by moderate demand and supply dynamics, with slight price fluctuations mid-quarter but general stability towards the end.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 for the Recycled-Linear Low-Density Polyethylene (R-LLDPE) market in North America was marked by a bearish outlook due to sluggish market offtakes and declining demand from downstream packaging and construction industries. The abundance of product supply relative to low demand and ample inventories in the region led suppliers to offer discounts on the commodity to facilitate sales. The market encountered several challenges characterized by reduced demand from downstream industries, including packaging and construction, leading to a decline in market dynamics. The market was oversupplied due to muted trading activities, and the weakening PMI index added further complexity to the market landscape.
Despite efforts to balance the supply-demand dynamics by reducing production rates, major market players experienced a softening trend in R-LLDPE prices. However, healthy procurement activities from end-user businesses could be observed, which may help to stabilize the market.
In the United States, which experienced significant changes in pricing, there was a lateral price trend influenced by the economic pricing of virgin LLDPE over R-LLDPE. North America faced challenges in the R-LLDPE market, with a bearish outlook driven by slow market activity, weakened demand, and surplus product availability. Despite the potential for increased demand in certain sectors, the market remained uncertain, and discounts were offered to stimulate sales.
APAC
The fourth quarter of 2023 for the Recycled-Linear Low-Density Polyethylene (R-LLDPE) market in the APAC region was characterized by a bearish outlook due to slow market offtakes and deteriorating demand from the downstream packaging and construction industries. The high supply of the product over low demand and sufficient inventories in the region further pushed suppliers to provide discounts on the commodity to sell off their material. The growing demand for electrical goods and adoption of lightweight materials in industries such as packaging and electronic applications were anticipated to drive the R-LLDPE market, but the market remained unstable. China, which experienced the maximum changes in pricing, showcased a sideways price trend, influenced by the economic pricing of virgin LLDPE over R-LLDPE. The correlation price percentage of China in Q4 was negative 2.6%, while the percentage change in price from the previous year's Q4 was negative 5%. The quarter ending price of R-LLDPE-Extrusion Grade -FOB Tianjin in China was USD 760/MT.
Europe
The Recycled Linear Low-Density Polyethylene (R-LLDPE) market in Europe witnessed a decreased performance in the current quarter of 2023 (Q4), with Germany being the most affected country. The market faced several challenges in the form of reduced demand from downstream industries, including packaging and construction, leading to a decline in market dynamics. The market was oversupplied due to muted trading activities, and the weakening PMI index added further complexity to the market landscape. Despite efforts to balance the supply-demand dynamics by reducing production rates, major market players experienced a softening trend in R-LLDPE prices. The primary driver behind the price decline was the negative demand from downstream industries involved in the production of recycled consumer goods and packaging materials, particularly when compared to the demand for virgin LLDPE products. The correlation price percentage of Germany in Q4 was negative 9.2%, while the percentage change in price from the previous year's Q4 was negative 11%. The latest price of R-LLDPE Translucent Pellets FD-Hamburg in Germany at the end of Q4 was USD 1060/MT.
MEA
The current quarter (Q4) of 2023 has been challenging for the Recycled-Linear Low-Density Polyethylene (R-LLDPE) market in the Middle East region due to weak demand from downstream sectors such as packaging and construction. The market faced an oversupply situation due to consistent material production, resulting in high inventories and hesitant buyers. The sustained weakness in energy prices and the ready availability of post-consumer and industrial waste in the region positively influenced the production cost of fresh R-LLDPE film. The ongoing rise in energy costs due to the Israeli-Palestinian conflict resulted in increased production expenses, contributing to a price increase. Saudi Arabia witnessed a decline in prices due to unfavourable demand projections from downstream industries engaged in the production of recycled consumer goods and packaging materials. The market maintained a well-balanced condition in terms of supply and demand, contributing to market stability. The latest price of R-LLDPE -Blown Film Spot Ex-Riyadh in Saudi Arabia at the end of Q4 2023 was USD 794/MT. The price has decreased by 3% from the previous quarter and 12% from the same quarter of the last year.
