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LDPE Film Grade FOB Texas prices recorded a sharp upward trajectory in the second half of March, driven by escalating feedstock costs, strong packaging demand, and rising geopolitical risk premiums. In the third week (ending March **), LDPE prices surged to USD *,***/MT, marking a steep **.*** increase from USD *,***/MT in the prior week. The rally was largely attributed to elevated ethane costs and a widened gas-processing frac spread during mid-March, which significantly increased cracker input costs and forced producers to pass through higher pricing for LDPE.
Supply-side conditions tightened as steam crackers in Texas and Louisiana focused on margin defence, limiting spot availability of LDPE聽despite stable operating rates. This prompted traders to secure volumes aggressively. At the same time, robust downstream demand for LDPE from the U.S. flexible packaging sector鈥攑articularly for food applications such as snack pouches, bakery wraps, frozen food films,...
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