In Q1 2024, m-LLDPE prices saw a bullish trend across the North American markets, with a notable 17% rise in the US market. Several factors drove this upward momentum. Strong demand from key industries, particularly the packaging and construction sector, played a significant role. Increased construction activities and positive business sentiment fuelled overall economic growth, boosting confidence in future prospects. Additionally, the rising cost of feedstock Ethylene, caused by surging upstream Naphtha and Crude Oil prices, heightened production costs, further pushing m-LLDPE prices upward. The US experienced the most significant price shifts, with a steady increase in LLDPE prices throughout the quarter.
In Q2 2024, the US m-LLDPE market again experienced a 1% moderate increase. Several factors contributed to this increase, including increased demand from key downstream sectors such as construction and packaging. This increase in demand was compounded by moderate inventory levels. This increase was also associated with upstream Crude Oil prices which fluctuated during this period and supported the price of products.
In the first month of Q3 2024, Metallocene Linear Low-Density Polyethylene (m-LLDPE) prices exhibited a stable trend primarily due to the balanced gap between the demand and supply. Furthermore, the demand for the product was almost stable while the supply of the product was also moderate which further resulted the stable trend in the country.
It is anticipated that the price of the product may decrease in Q4 2024 following the stable trend in Q3 2024. This potential decline is expected to result from lower demand associated with the arrival of the summer season in some regions and the normalization of freight rates. The freight rates, which had significantly increased due to the Red Sea crisis and port congestion, are likely to stabilize, influencing the pricing dynamics of the product. Additionally, demand is projected to soften as downstream construction activity typically slows in colder regions, although it may remain stable in warmer climates. Furthermore, the demand for m-LLDPE agricultural films is expected to decrease, except in areas with winter crop cycles or regions with year-round agricultural activities.