HDPE margins turn negative as prices move below ethylene in SEA
Spot ethylene prices on a CFR Far East Asia basis have recorded a cumulative increase of $130/ton since the second week of August while they have recently stabilized at around $1195/ton, the highest level since mid-April.
ChemOrbis data indicates that the gap between spot ethylene prices in Far East Asia and CFR Southeast Asia based HDPE film prices is currently standing at around $42/ton, suggesting that HDPE film is now being traded significantly below its breakeven point for producers in Northeast Asia.
The situation for the region’s import LDPE and LLDPE markets is not the same since they have been carrying a notable premium over HDPE film prices for the last few months due to their relatively tighter availabilities. Nevertheless, due to the recent run up in spot ethylene prices in Northeast Asia, data suggests that spot ethylene is currently standing just $7/ton below LDPE film and only $3/ton below LLDPE film prices.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- June expectations surface in Mid-Eastern, African polyolefin markets
- China’s local PVC market retreats from 8-month high
- Initial June PE offers to SEA signal firming despite buyers’ resistance
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally