Low-Density Polyethylene (LDPE) prices have been on an upward trajectory, largely due to ongoing supply shortages. According to the ChemOrbis Price Index, weekly average LDPE film prices in China and Southeast Asia have recently reached their highest levels in nearly two years.
The price difference between LD and HD film exceeds 200 USD in Southeast Asia
In Southeast Asia, the price differential between LDPE and High-Density Polyethylene (HDPE) film has widened significantly, exceeding $200 per ton. Currently, imported LDPE film prices are topping $1,300 per ton. Compared to the previous week, the price range for all origins has increased by $40 per ton. Now estimated between $1,220 and $1,320 per ton CIF Southeast Asia, cash.
This sharp increase in LDPE prices contrasts with the relatively weak performance of HDPE, which lags far behind. Data from ChemOrbis shows that the premium for LDPE over HDPE has surged from $100 per ton in mid-May to over $200 per ton. Reaching a peak of $205 per ton since August 2022.
Moreover, LDPE film prices from Malaysia have seen a notable rise, climbing by $120 per ton in Vietnam over the past month. The latest prices for Malaysian LDPE are now in the range of $1,320 to $1,340 per ton, with some shipments trading at $1,320 per ton CIF Vietnam
Supply Constraints and Freight Costs Intensify Price Hikes
The combination of supply constraints and elevated freight rates has prompted sellers to push for higher LDPE prices. During the maintenance season in the Middle East and Asia, LDPE has been the most impacted, resulting in a tight supply situation. In China, the supply conditions are similarly strained.
Additionally, disruptions in maritime shipping have driven up freight rates, which have been passed on to material prices. A source from a Korean manufacturer noted, “Supply remains tight due to factory maintenance shutdowns. Along with shipping costs tripling in recent months, these factors have contributed significantly to recent price increases.”
Reference source https://vpas.vn/thong-tin/tin-tuc/gia-ldpe-film-dat-muc-cao-nhat-trong-gan-hai-nam-o-trung-quoc-dong-nam-a.html