Spot US polyethylene pricing hits multi-year highs for HDPE, LLDPE and LDPE

New York — Spot US export pricing for high density polyethylene blowmolding, linear low density polyethylene and low density polyethylene all hit multi-year highs as pricing rose on the week, due to lack of availability, strong demand and limited inventories, sources said March 3.

S&P Global Platts assessed US spot export LDPE $210 higher on the week at $1,830-$1,852/mt (83-84 cents/lb) FAS Houston basis, with rail car pricing discussed at 80-81 cents/lb.

The assessment is the highest LDPE pricing in over 12.5 years, Platts data shows.

The previous high for US LDPE was August 12, 2008, at $1,863/mt midpoint (84.5 cents/lb) FAS Houston basis.

The increase is based on continued strong demand and desperation for export spot pricing, sources have said.

LDPE climbed consistently since Nov. 30, 2020, when the grade was assessed at $1,091/mt, and has increased to a $1,841/mt midpoint, up $750, or 68.7% since that date.

Since the beginning of 2021, the assessment rose about 46.5%, or $584 from Jan. 4 when pricing was assessed at $1,257/mt midpoint (57 cents/lb) FAS Houston.

On the year-ago date, LDPE was assessed at $948/mt (43 cents/lb) FAS Houston, and the assessment has risen about 94.2%, or $893, since.

In the past few months, LDPE has increased due to strong demand and limited supply as producers work on getting units restarted or online, while also having strong domestic demand and limited export availability, sources have said.

"There is no volume," one source familiar with the situation said.

In general, pricing is reaching higher values due to limited US production and inventories, sources have said.

Meanwhile, US HDPE blowmolding spot export pricing was assessed up $165 on the week at $1,642-$1,664/mt (74.5-75.5 cents/lb) FAS Houston with railcar pricing talked at 72 cents/lb, by sources.

The assessment is the highest HDPE blowmolding pricing in almost 6.5 years, Platts data shows.

The increase is due to higher pricing indications and sources seeing limited spot export availability.

"Some producers have already told me to expect an export price jump," for the rest of March, one trader source said.

The previous high for US HDPE blowmolding was Oct. 24, 2014, at $1,654/mt midpoint (75 cents/lb) FAS Houston basis.

HDPE blowmolding has consistently climbed since Dec. 2, 2020, when the grade was assessed at $981/mt, and has increased to a $1,653/mt midpoint, up $672, or 68.5% since that date.

Since the beginning of 2021, the assessment rose about 54.6%, or $584 from Jan. 4 when pricing was assessed at $1,069/mt midpoint (48.5 cents/lb) FAS Houston.

On the year-ago date, HDPE blowmolding was assessed at $772/mt (35 cents/lb) FAS Houston, and the assessment has risen about 114%, or $881, since.

Separately, Platts assessed US spot export LLDPE butene $276 higher on the week at $1,654-$1,676/mt (75-76 cents/lb) FAS Houston basis, with rail car pricing discussed at 72-73 cents/lb.

The LLDPE butene assessment is the highest pricing in almost 6.5 years, Platts data shows.

The previous high for US LLDPE butene was Oct. 17, 2014, at the same level of $1,665/mt midpoint (75.5 cents/lb) FAS Houston basis.

The increase is due to fresh pricing indications for March and limited inventory supply, sources said.

"There's still a lot of demand and desperation out there. The first customers who will get product is US converters, then producers will do an inventory buildup then export will get product," one source said. "Looking at the export market, there probably won't be anything until the end of April, with nothing in March except for contract customers."

The grade has continuously increased since Nov. 11, 2020, when the grade was assessed at $893/mt and has increased to $1,665/mt mid-point, up $772, or 86.5% since that date.

Since the beginning of 2021, the LLDPE butene assessment rose about 69.7%, or $684 from Jan. 4 when pricing was assessed at $981/mt midpoint (44.5 cents/lb) FAS Houston.

On the year-ago date, LLDPE butene was assessed at $772/mt (35 cents/lb) FAS Houston, and the assessment has risen about 115.7%, or $893, since.