High-density polyethylene (HDPE) prices across Latin America continued their downward march this week, pressured by swollen inventories and a sluggish regional economy that has kept buyers cautious. Market participants told that converters remain hesitant to absorb new material while macroeconomic conditions, ranging from soft consumer demand to tighter financing, make it difficult for them to clear existing stocks.
The persistent oversupply has created a standoff between producers and traders. U.S. producers exporting into the region have largely resisted cutting their official offers, preferring to hold pricing steady in the face of weak sentiment. Traders, on the other hand, have shown more flexibility, adjusting their deals to entice hesitant customers. This widening gap between producer indications and final transaction levels has added to the market’s cautious tone, prompting many buyers to wait on the sidelines for deeper concessions.
Price assessments reflect the mounting pressure. In Brazil, cost-and-freight (CFR) levels for HDPE injection and blow-moulding grades both fell to the USD 860–890 per metric ton range, about USD 30 lower than the previous week. HDPE film prices in the country saw a steeper week-on-week drop of USD 40, sliding to USD 880–910 per metric ton. Along the west coast of South America, HDPE blow-moulding material eased to USD 870–900 per metric ton, down USD 10, while HDPE film slipped USD 20 to a similar range of USD 880–910. Injection grade moved to USD 850–880, a decline of USD 30 from last week’s figures.
The Mercosur market showed slightly less dramatic movement but still trended lower. Injection grade was assessed at USD 910–940 per metric ton and blow-moulding at USD 890–920, each down USD 10. Film grade followed suit, easing to USD 880–910 per metric ton, also down USD 10 on the week.
Upstream feedstock costs offered no counterweight. Spot ethylene along the U.S. Gulf Coast held steady at 20.00–20.50 cents per pound, unchanged from a week earlier. Export pricing from the United States also weakened, with HDPE film assessed at USD 805–825 per metric ton FAS Houston, down USD 25. Injection grade settled at USD 765–785 and blow-moulding at USD 785–805, both off by USD 20 from the prior week.
Traders say the coming weeks will test whether supply discipline or a seasonal uptick in demand can stabilize the market. For now, the combination of heavy inventories, economic headwinds, and aggressive competition keeps the balance of power with buyers, many of whom remain in no rush to step back in.
