Spot US LDPE climbs to highest price in almost 34 months amid limited volume

Houston — The spot US low density polyethylene export price rose on the day Jan. 14 to the highest level in almost 34 months amid little to no volume, sources said.

S&P Global Platts assessed US spot export low density polyethylene up $33 day on day at $1,389-$1,411/mt (63-64 cents/lb) FAS Houston basis, with rail car pricing discussed at 60-61 cents/lb. The FAS assessment includes an additional 3 cents/lb to cover packaging and transportation costs.

The previous high for US LDPE was March 23, 2018, at the same assessment level.

"LDPE is being talked at 60+ but I am not sure if there is any volume," one trader source said.

On the year-ago date, LDPE was assessed at $1,113/mt (50.5 cents/lb) FAS Houston, and the assessment has risen about 25.8%, or $287, since.

In recent months, the grade has risen due to tight supply and strong domestic and international demand. LDPE has been climbing consistently since Nov. 30, 2020, when the grade was assessed at $1,091/mt, and has increased to a $1,400/mt midpoint, up $309, or 28.3% since that date.

Sources expect pricing to continue climbing into February as volume continues to lack and demand remains strong.