Low-density polyethylene (LDPE) prices in Europe continued to lose ground this week, with spot values sliding sharply while contract prices largely held their ground. Traders and producers across the region described a market weighed down by plentiful supply, muted downstream demand, and unrelenting competition from attractively priced imports.
An industry source told that European LDPE spot prices fell in response to a persistent glut of material and weak purchasing activity. Sellers facing swollen inventories have become more flexible in price negotiations, while competitive offers from overseas, particularly the United States, have amplified the pressure on local suppliers. Distributors noted that key end-use sectors such as packaging and construction remain subdued, limiting restocking efforts and keeping buyers on the sidelines.
Spot LDPE values were assessed at EUR 1,025–1,035 per metric ton FD Northwest Europe, a steep decline of EUR 40 from the previous week. In a similar downtrend, FCA Antwerp LDPE general-purpose film prices dropped to EUR 1,010–1,020 per metric ton, also falling by EUR 40 week on week.
Despite the sharp retreat in the spot arena, European contract prices held relatively stable in September, as producers and buyers struck rollover settlements to preserve already tight margins. General-purpose LDPE contract prices remained at EUR 1,910–1,915 per metric ton FD NWE Germany and Italy, unchanged from last week, while France saw the same steady levels. The United Kingdom registered a minor dip, with contracts assessed at GBP 1,650–1,655 per metric ton, down GBP 10 from the prior week.
Market participants said that elevated production costs and a desire to defend margins kept suppliers from making deeper concessions in the contract market, even as spot prices softened. Nevertheless, traders acknowledged that sustained weak demand could challenge this delicate balance in the weeks ahead if end-user industries fail to show signs of recovery.
Upstream, ethylene spot prices stayed flat at EUR 675–685 per metric ton FD Northwest Europe, while the European ethylene contract price for September settled at EUR 1,130 per metric ton, a marginal EUR 5 increase from August.
Looking forward, sentiment in the LDPE sector remains cautious. Sources warn that without a rebound in consumer demand or a significant shift in trade dynamics, European LDPE prices may face further erosion, especially with competitively priced U.S. shipments continuing to dominate the import market and challenge regional producers.
