March 2024 polyethylene prices update

After reaching a low point in July 2023, polyethylene prices have started to show signs of a timid recovery in recent months. The following chart illustrates the price trend in euros for low-density polyethylene (LDPE) and high-density polyethylene (HDPE) over the last 24 months, highlighting a clear trend reversal in the summer of 2023 for both types.

Low-density and high-density polyethylene prices in euros

A subsequent table provides a comparison of the average annual prices for various polyethylene variants, from 2019 to the present, offering a synthetic overview of the price evolution of different types.
The analysis reveals that:

• In the first three months of 2024, the prices for the four types of polyethylene analyzed (HDPE, LDPE, Linear Low-Density Polyethylene - LLDPE, and Polyethylene Terephthalate - PET) are in perfect alignment.
• Comparing prices in the early months of 2024 with the average for 2023, it is noted that prices for HDPE, LDPE, and LLDPE have remained substantially stable.
• The average price of virgin PET in the first months of 2024 has seen a significant increase compared to the 2023 average, a year in which the PET price was unusually low, even lower than that of recycled PET.
• In the early months of 2024, the ratio between the price of recycled PET and virgin PET has returned to long-term levels, marking the end of the anomaly recorded in 2023.

Prices of various types of polyethylene (euro/tonne)

An additional table highlights the price variations compared to 2019 for the commodities mentioned, offering a snapshot of the cumulative change during the period of strong turbulence following 2019.

Rates of change in polyethylene prices compared to 2019

In this case, the 2019 price levels can serve as a reference. In the early months of 2024, compared with the levels of 2019, the prices for the different polyethylene variants show alignment, with increases ranging between 13% and 17%.

It is important to emphasize that the price of ethylene, the basic monomer for the production of the various types of polyethylene, recorded at the beginning of 2024 an increase of less than 10% compared to 2019. Conversely, the price of virgin naphtha, the main raw material used in the production of these plastics, marked in the early months of 2024 an increase of over 30% compared to 2019.
This discrepancy in price changes relative to 2019 indicates increasing upstream cost pressures, deriving from the price of oil and thus virgin naphtha, while downstream market conditions, characterized by weak demand, have limited the increase in polyethylene prices.