Latin America’s low-density polyethylene (LLDPE) market continued its slide this week, weighed down by an uncomfortable mix of plentiful supply and anemic demand. Traders across Brazil, the West Coast of South America, and the Mercosur region reported a steady erosion in spot prices as sellers scrambled to move inventory.
An industry source in the region, speaking on condition of anonymity, told a correspondent that buyers are keeping their wallets closed while producers and traders fight for what little activity remains. “Spot import LLDPE prices across various grades keep falling,” the source said. “Sellers are competing aggressively, tweaking bids just to land a deal, but U.S. producers are reluctant to chase the market lower.”
The standoff between producers, who want to preserve margins, and traders, who need to move product, has opened a widening gap between official producer offers and the actual numbers that buyers are willing to pay. Many downstream converters, facing sluggish end-user demand, are waiting for sharper discounts before stepping in, creating a self-reinforcing cycle of hesitation and price softness.
Price assessments across the region reflected the downward momentum. CFR Brazil levels fell to a range of USD 910–940 per metric ton, a hefty drop of USD 50 from last week. LLDPE Film headed to the West Coast of South America slid to USD 880–910 per metric ton, down by about USD 30. Mercosur cargoes eased more gently, landing between USD 970 and 990 per metric ton, about USD 10 lower week-on-week.
Upstream signals offered little support. Spot ethylene on a FOB U.S. Gulf basis held steady around 20.00–20.50 cents per pound, providing no cost-push incentive for sellers to hold the line. Even in the United States, where export demand sometimes sets the regional tone, FAS Houston LLDPE export prices retreated sharply to USD 785–805 per metric ton, a fall of USD 45 from the previous week.
The combination of oversupply, muted buying interest, and a lack of upstream pressure suggests that the regional LLDPE market may remain under strain in the near term. Market participants are now watching closely for any hint of a production slowdown or a pickup in downstream consumption that could stabilize sentiment. Until then, buyers are content to wait and sellers are left competing in an increasingly crowded field.
