High-density polyethylene (HDPE) prices across Latin America slipped this week, weighed down by fragile fundamentals, seasonally sluggish demand, and competitive import pressure from the US and Middle East. Market participants described sentiment in the West Coast of South America and the Mercosur region as negative, with buyers opting to defer fresh commitments in anticipation of softer September offers.
A regional source told that, “HDPE prices in the West Coast of South America and the Mercosur region fell for all grades, as ongoing weak market fundamentals undermined sentiment. The already weak demand was further compounded by the typical slowdown at month’s end, when many buyers delay purchases until new proposals arrive.”
Converters in Argentina exercised caution, deliberately maintaining low inventory levels. Similar restraint was observed in Paraguay and Uruguay, where buyers reported that downstream packaging and film demand remains insufficient to absorb available supply. Sellers, under pressure from discounted cargoes originating from the US and Middle East, were forced to trim offers to secure business. Despite these reductions, transaction levels stayed muted as participants adopted a wait-and-see approach.
CFR Brazil HDPE values held largely steady, with film assessed at USD 920–950/mt, blow molding at USD 890–920/mt, and injection at USD 920–950/mt. However, the domestic market was unsettled after Brazilian authorities recommended a preliminary anti-dumping duty on imports from the US and Canada on August 21. While prices did not immediately shift, the announcement introduced fresh uncertainty into trade flows, leaving buyers cautious about the potential impact on import costs and supply competitiveness in the months ahead.
Elsewhere, declines were more pronounced. CFR West Coast South America HDPE film slipped USD 20/mt to USD 910–940/mt, while blow molding fell USD 10/mt to USD 890–920/mt. Injection held flat at USD 890–920/mt. In Mercosur, HDPE injection was assessed at USD 940–970/mt, down USD 10/mt, while blow molding stood at USD 920–950/mt, also down USD 10/mt. Film dropped USD 10/mt to USD 920–950/mt.
Global dynamics added further bearish tone, with spot US Gulf ethylene dropping 1.50 cents/lb to 20.50–21.00 cents/lb, and US HDPE exports retreating across the board. HDPE film was assessed at USD 830–850/mt FAS Houston, down USD 10/mt, injection fell USD 20/mt to USD 785–805/mt, and blow molding dropped USD 15/mt to USD 805–825/mt.
The combination of persistent oversupply, weak downstream pull, and looming trade policy shifts leaves Latin American HDPE markets braced for continued pressure as September begins.
