Initial three weeks of January 2026, the German High Density Polyethylene (HDPE) market showed clopped pattern: prices inched down by 0.47% in the first week, and in the second week HDPE made another decline of 0.47%, then in third week HDPE prices increased by 2.36%, bringing bullish movement. Early weakness originated from abundant Middle East and U.S. cargoes widening the arbitrage and surrounding offers, with ethylene unmovable. Early softening was due to ample HDPE supply from Middle East and U.S. cargoes widening the arbitrage and capping offers, with ethylene unmovable. Third-week surge was triggered by an anticipated ethylene supply shortage from the sequential cracker and Shell Wesseling鈥檚 exit from crude processing, restricting regional naphtha and ethylene supply flows. Robust domestic demand remains key driver but tradable prices in the face of weak manufacturing and regulatory scrutiny of single use plastics dampening converter urgency while longer term recyclability trends and increasing pressure from end users support underlying interest.
