The demand for polyethylene decreased in March. Converters, observing the decline in crude oil prices, expect polymer prices to drop in April and are taking a wait-and-see approach. On the other hand, some converters will be forced to make purchases before the end-March, as their stocks accumulated during winter are running low. Traders are trying to empty their warehouses as much as possible before the end of the month, so they may slightly lower prices.
Meanwhile, the European Union is preparing comprehensive retaliatory measures in response to the U.S. decision to impose tariffs of up to 25% on imports of steel, aluminum, and related products from the EU and other trade partners. There are rumors that possible tariffs on U.S. imports could also reach 25%. On March 12, the European Commission launched a two-week consultation with stakeholders to finalize the new package of retaliatory measures. The consultations will conclude on March 26, and the Commission plans to finalize the implementing act by mid-April 2025. The list of affected products also includes polyethylene and polymer-based goods.
- At the beginning of March, demand for HDPE was weak. Market players believe that most converters have sufficient stocks in their warehouses and are waiting for price reductions in April.
- Due to low demand, supply in the market fully covered customer needs.
- There was relatively strong demand from pipe manufacturers for HDPE with MFI=0.3-0.5.
- The price of HDPE remained unchanged, and traders were willing to offer discounts for larger purchases.
- Demand for LDPE and LLDPE slightly declined in March.
- The market experienced a shortage of materials, especially LDPE grades with MFI=0.3. Some traders had no stock available for their customers and expected the first deliveries of the material only at the end of the month.
- LDPE and LLDPE were primarily purchased by packaging and film manufacturers.
