Low-density polyethylene (LDPE) export prices in the United States held firm this week, as a cautious balance between supply and demand kept values unchanged even while upstream feedstock markets moved in contrasting directions.
An industry source in the U.S. told that the prevailing stability was not a sign of robust activity but rather of restraint among both buyers and sellers. “Demand-supply equilibrium ensured stability for US LDPE spot prices. Sellers continued to hold on to price levels with buyers preferring to take care of urgent requirements, mirroring a sluggish market environment. Market participants have been seen adopting a wait and watch stance while assessing where the market is headed,” the source explained.
Assessments confirmed the standstill. FAS Houston LDPE export prices were pegged at USD 940–960/mt, steady from the previous week. The absence of price fluctuations highlights the subdued tone of the market, where players are reluctant to commit to large-volume transactions until clearer direction emerges.
Upstream, however, trends showed greater movement. Spot ethylene prices in the U.S. Gulf edged higher to 20.50–21.00 cents/lb FOB, a week-on-week gain of 0.50 cents/lb. The increase reflected firming short-term sentiment in the spot market, though this strength was not immediately transmitted downstream to LDPE values.
Contract settlements told a different story. The U.S. ethylene contract price for September 2025 was finalized at 31.00 cents/lb, representing a drop of 1.00 cent/lb compared with August levels. This decline indicates that while spot prices firmed modestly, contract negotiations reflected softer expectations for longer-term fundamentals.
Market watchers note that LDPE’s near-term trajectory remains clouded by uncertainty. With buyers limiting purchases to essential needs and sellers resisting downward adjustments, stability may persist in the short run. However, the volatility in upstream ethylene could eventually filter through, especially if broader macroeconomic conditions weaken demand further or if producers adjust operating rates in response to shifting margins.
