LLDPE price May 2023 and forecast (see chart below)
- USA:US$1.27/KG, -1.6% down
- Europe:US$1.67/KG, -4.6% down
- China:US$1.18/KG, -0.8% down
- India:US$1.24/KG, 1.6% up
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LLDPE Price Index
This post is a summary of the global LLDPE price developments. The price developments of global LLDPE prices are expressed in US$ prices converted FX rates applicable at the time when the price was valid. LLDPE price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.
The outlook for global LLDPE prices, on the second tab, is generated from different inputs including:
- Very recent price developments of immediate cost drivers of global LLDPE resin prices
- Recent price developments of underlying feedstocks which drive the price of LLDPE
- Market futures for both cost drives and feedstocks of global LLDPE prices
- Adjustment of current supply/demand imbalances in the LLDPE market
- Longer term trends in likely demand conditions
Further information on the LLDPE price index chart
What is LLDPE
LLDPE stands for linear low-density polyethylene. It is a type of plastic that is commonly used in the production of various products, such as plastic bags, films, sheets, and containers. LLDPE is a form of polyethylene that has a linear, branched structure, which gives it unique properties compared to other forms of polyethylene.
LLDPE is known for its flexibility, toughness, and resistance to impact, puncture, and tear. It has good barrier properties against moisture and gases, making it useful in the packaging of food and other perishable goods. LLDPE is also lightweight, which makes it an attractive material for reducing the weight of products and increasing their transport efficiency.
LLDPE is produced through a process called polymerization, in which ethylene monomers are reacted in the presence of a catalyst to form the polymer. The specific properties of LLDPE can be adjusted by varying the manufacturing conditions, such as the catalyst used, the pressure and temperature of the reaction, and the co-monomers added to the polymerization process.
How is LLDPE produced
LLDPE, or linear low-density polyethylene, is typically produced using a process called polymerization. This process involves the reaction of ethylene monomers with a catalyst under specific conditions to form a polymer.
The most common method for producing LLDPE is called the gas-phase process. In this process, ethylene and a comonomer (such as butene, hexene, or octene) are introduced into a reactor vessel containing a bed of catalyst particles. The reactor is typically operated at high pressure and temperature, with the use of a gas circulation system to maintain a constant temperature and pressure throughout the reactor.
As the monomers react with the catalyst, they form a growing polymer chain. The polymer particles are then carried by the circulating gas flow to a fluidized bed, where they are cooled and solidified. The resulting LLDPE particles are then separated from the gas flow and collected for further processing.
The properties of the resulting LLDPE can be adjusted by varying the manufacturing conditions, such as the type and amount of comonomer used, the pressure and temperature of the reactor, and the catalyst system used. This allows for the production of a wide range of LLDPE grades with different properties and applications.
What is LLDPE used for
LLDPE, or linear low-density polyethylene, has a wide range of uses and applications, particularly in the packaging and construction industries. Some of the most common uses of LLDPE include:
LLDPE is commonly used to produce plastic bags, including grocery bags, trash bags, and other types of packaging.
Films and sheets
LLDPE is also used to produce films and sheets for various applications, such as packaging, protective coatings, and agricultural films.
LLDPE is used to produce containers for storing and transporting liquids, such as detergents, chemicals, and other industrial products.
LLDPE is used in the construction industry to produce pipes, fittings, and other products that require flexibility, toughness, and resistance to impact and corrosion.
Wire and cable insulation
LLDPE is used as an insulation material for wires and cables, due to its good electrical properties and resistance to abrasion and weathering.
Medical and healthcare products
LLDPE is used in the production of medical and healthcare products, such as tubing, bags, and packaging, due to its ability to resist contamination and sterilization.
Overall, LLDPE is valued for its flexibility, toughness, and resistance to impact, puncture, and tear, making it a versatile material that is used in a wide range of applications.
What are the key properties of LLDPE
The key properties of LLDPE, or linear low-density polyethylene, include:
LLDPE is a flexible material, which makes it useful in applications that require stretchability, such as packaging films and bags.
LLDPE is a tough material that can withstand impact and puncture, making it useful in applications that require durability and strength.
LLDPE is resistant to chemicals, such as acids and bases, which makes it useful in applications that require chemical resistance.
LLDPE has a lower density compared to other polyethylene materials, which makes it lighter and more cost-effective for use in packaging and other applications.
Good sealing properties
LLDPE has good sealing properties, which makes it useful in applications that require airtight or watertight seals, such as packaging for food and beverages.
Heat sealing ability
LLDPE can be easily heat sealed, which makes it useful in applications that require airtight seals or closures.
LLDPE has good UV resistance, which makes it useful in applications that require resistance to outdoor weathering.
Overall, the properties of LLDPE make it a versatile and widely used material in many different applications, particularly in the packaging industry.
What drives the cost of LLDPE
The cost of LLDPE, or linear low-density polyethylene, can be influenced by several factors, including:
Raw material prices
The price of LLDPE is influenced by the cost of the raw materials used in its production, such as ethylene and comonomers. Fluctuations in the price of these raw materials can impact the cost of LLDPE.
Production capacity and utilization
The availability and utilization of production facilities can impact the cost of LLDPE. If production capacity is limited or if there are disruptions in the production process, this can lead to a shortage of LLDPE and higher prices.
Manufacturing and transportation costs
The cost of producing LLDPE can vary depending on the manufacturing process and location. Transportation costs can also impact the final cost of LLDPE, especially if it needs to be shipped long distances.
Government policies and regulations
Government policies and regulations, such as tariffs or import/export restrictions, can impact the cost of LLDPE by affecting the availability and price of raw materials, as well as transportation and trade costs.
Overall, the cost of LLDPE can be influenced by a variety of factors, many of which are beyond the control of individual manufacturers or consumers.
How big is the global LLDPE market
The global LLDPE (linear low-density polyethylene) market size was valued at around USD 57.5 billion in 2020, according to a report by Grand View Research. The LLDPE market is expected to grow at a compound annual growth rate (CAGR) of around 5.3% from 2021 to 2028. The market growth is primarily driven by the increasing demand for LLDPE in the packaging industry, especially for food and beverages. Other factors driving the growth of the LLDPE market include the growing construction industry and the increasing use of LLDPE in the manufacture of pipes, films, and coatings. The Asia Pacific region is expected to be the largest market for LLDPE, driven by the growth in the construction and packaging industries in countries such as China, India, and Japan.
According to https://oec.world/ :
Polyethylene are the world’s 53rd most traded product.
In 2018, the top exporters of Polyethylene were Saudi Arabia ($10.7B), United States ($5.97B), Belgium ($4.21B), Germany ($3.1B), and Singapore ($3.06B).
In 2018, the top importers of Polyethylene were China ($10.5B), Germany ($2.99B), United States ($2.61B), Singapore ($2.22B), and Italy ($2.06B).
- Wikipedia for general, history, production and usage information
- PubChem for chemistry and property information
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Notes on the price-data
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