LDPE trades below HDPE film, loses premium over other grades in Italy

Overall PE markets have mostly yielded to the sluggish demand and lower ethylene settlement. Although suppliers managed to keep decreases for LLDPE and HDPE grades in check, LDPE offers saw larger drops of €40/ton or beyond this level amid supply pressure. This caused LDPE’s premium over other PE grades to narrow or completely evaporate in Italy.

LDPE sees larger decreases than other grades

LDPE has been lagging behind other grades for some time now, while most sellers conceded to larger decreases on this grade due to weak demand and comfortable availability. Players attributed lower-than-usual demand for LDPE to the unsatisfactory high season in the agricultural film sector.

Supplies for other PE grades were balanced to tight amid lingering delivery delays from the Middle East. Apart from that, producers are unwilling to cut their prices further, citing squeezed margins and low stock pressure. They are pinning their hopes on rising crude oil and naphtha prices as well as a potential pickup in demand heading towards the summer season.

LDPE moves below HDPE film after 3 years

According to ChemOrbis Price Index, Italy’s LDPE market started to trade below HDPE film prices for the first time since April 2020 in the week ending April 14. LDPE prices stand €20/ton below the weekly average of HDPE film prices.

Local LDPE film prices are currently trading on par with local HDPE inj. and blow moulding prices in Italy. Meanwhile, the LDPE-LLDPE delta in Italy narrowed to €50/ton from €100/ton in early March, marking the narrowest gap since May 2020.