Hdpe Plastic: Understanding The Cost Breakdown

The price of high-density polyethylene (HDPE) has fluctuated significantly over the past few years, reaching a low of 837 US dollars per metric ton in 2020 and a high of 1,211 US dollars per metric ton in 2018. The price of HDPE is influenced by the cost of raw materials, such as ethylene, which is a petrochemical product affected by global oil prices and supply and demand dynamics. In 2024, the Europe region experienced an upward trajectory in recycled HDPE pricing due to increased demand and constrained supply.

HDPE price per ton

The price of high-density polyethylene (HDPE) has fluctuated significantly from 2017 to 2023, reaching a low of 837 US dollars per metric ton in 2020 and a high of 1,211 US dollars per metric ton in 2018. The price was shown to have increased slightly from this 2020 minimum to a value of 988 US dollars per metric ton in 2023. One of the main factors that influences the HDPE market is the price of the raw material ethylene. Ethylene is a petrochemical product that is significantly affected by global oil prices and supply and demand dynamics. In 2021, the global ethylene market size was valued at 176 billion US dollars and was forecast to increase to a value of 287 billion US dollars by 2030. The Asia Pacific region dominates the ethylene market, contributing 42.6% of total revenue.

In Germany, the price of HDPE has seen the most pronounced changes, with prices reflecting a significant increase from the previous quarter, indicative of strong market fundamentals. Seasonality also played a role, with heightened activity in the summer months driving demand and contributing to a 3.4% price increase between the first and second half of the quarter. Despite these increases, prices in Q2 2024 were still substantially lower compared to the same quarter last year, highlighting a recovery phase from previous declines. The consistent demand from key sectors and stable supply of post-consumer bales have ensured a positive pricing environment in Germany, culminating in a quarter-ending price of USD 1,215 per metric ton for light pellets grade on an FOB Hamburg basis.

In Saudi Arabia, the price of R-HDPE for injection moulding on a spot ex-Riyadh basis settled at USD 770 per metric ton in Q2 2024.

Since 1950, the global production of plastic materials has exceeded nine billion metric tons, but only nine per cent of them have been recycled. The remaining plastic waste has been either discarded in landfills or released into the environment. As one of the most widely manufactured plastics worldwide, HDPE waste can accumulate over time, leading to pollution and adverse health effects for both humans and animals. To address these issues, various alternatives to HDPE are being developed or utilised, such as bioplastics, synthetic paper, and bio-based HDPE. These alternatives aim to mitigate the environmental impacts of HDPE by utilising renewable resources, biodegradable materials, or minimising carbon emissions.

HDPE import and export price

The average import price for high-density polyethylene (HDPE) was $1.26. Qatar was the largest exporter of HDPE, accounting for 49.17% of total imports, followed by Saudi Arabia at 22.66%. The month of October 2015 saw the highest number of import shipments.

The average export price for HDPE pipes was $2.21. Sri Lanka was the largest importer, accounting for 38.64% of total exports, followed by Bangladesh at 34.70%. The month of April 2016 saw the highest number of export shipments.

In October 2017, the U.S. export price of HDPE was 1,390 U.S. dollars per ton.

HDPE production capacity

The cost of HDPE plastic varies depending on the region and the type of HDPE. The price of HDPE has fluctuated significantly from 2017 to 2023, reaching a low of 837 US dollars per metric ton in 2020 and a high of 1,211 US dollars per metric ton in 2018. The price increased slightly from the 2020 minimum to a value of 988 US dollars per metric ton in 2023. The national average price of colour HDPE is 14.59 cents per pound, with some regions paying as much as 18.50 cents per pound.

In terms of HDPE production capacity, the global ethylene market size was valued at 176 billion US dollars in 2021 and was forecast to increase to 287 billion US dollars by 2030. The ethylene market is predominantly dominated by the Asia Pacific region, which contributes 42.6% of total revenue. This region also experienced a positive pricing environment for R-HDPE in Q2 2024, with a further 4.5% increase in pricing. This positive pricing environment is influenced by increased cost pressures being efficiently passed through the supply chain, reflecting a bullish market sentiment.

The Europe region also experienced an upward trajectory in R-HDPE pricing in Q2 2024, influenced by robust demand and constrained supply dynamics. Key factors underpinning this price escalation include heightened consumption from downstream sectors such as packaging, construction, and automotive industries.

The production capacity of HDPE producers can be affected by various factors, including the availability of raw materials, global oil prices, supply and demand dynamics, and the cost of production. The price of the raw material ethylene is a significant factor influencing the HDPE market, as ethylene is a petrochemical product that is significantly affected by global oil prices and supply and demand dynamics.

Overall, the HDPE production capacity is influenced by a combination of market conditions, raw material availability, and cost pressures, which can vary across different regions and impact the pricing of HDPE.

HDPE market factors

The price of HDPE has fluctuated significantly from 2017 to 2023, reaching a low of 837 US dollars per metric ton in 2020 and a high of 1,211 US dollars per metric ton in 2018. The price increased slightly from this 2020 minimum to a value of 988 US dollars per metric ton in 2023. One of the main factors influencing the HDPE market is the price of the raw material ethylene. Ethylene is a petrochemical product that is significantly affected by global oil prices and supply and demand dynamics. In 2021, the global ethylene market size was valued at 176 billion US dollars and was forecast to increase to 287 billion US dollars by 2030. The Asia Pacific region dominates the ethylene market, contributing 42.6% of total revenue.

The price of HDPE is also influenced by the demand for the product. In Q2 2024, the Europe region experienced an upward trajectory in Recycled High-Density Polyethylene (R-HDPE) pricing, influenced by a confluence of robust demand and constrained supply dynamics. Key factors underpinning this price escalation include heightened consumption from downstream sectors such as packaging, construction, and the automotive industries.

The cost of HDPE can also be impacted by the price of alternative materials. If the price of alternative materials decreases, the demand for HDPE may decrease, which could result in a decrease in the price of HDPE. Additionally, the price of HDPE can be influenced by the cost of production. If the cost of producing HDPE increases, the price of the product may also increase to maintain profitability.

The price of HDPE may also be influenced by government regulations and policies. For example, if the government imposes taxes or tariffs on the import or export of HDPE, this could increase the price of the product. Additionally, if the government implements environmental regulations that impact the production or use of HDPE, this could also affect the price.

Overall, the price of HDPE is influenced by a variety of factors, including the cost of raw materials, demand, alternative materials, production costs, and government regulations. These factors can fluctuate over time, leading to changes in the price of HDPE.

HDPE market trends

The price of HDPE has fluctuated significantly from 2017 to 2023, reaching a low of 837 US dollars per metric ton in 2020 and a high of 1,211 US dollars per metric ton in 2018. The price was shown to have increased slightly from this 2020 minimum to a value of 988 US dollars per metric ton in 2023. One of the main factors that influences the HDPE market is the price of the raw material ethylene. Ethylene is a petrochemical product that is significantly affected by global oil prices and supply and demand dynamics. In 2021, the global ethylene market size was valued at 176 billion US dollars and was forecast to increase to a value of 287 billion US dollars by 2030. The ethylene market is predominantly dominated by the Asia Pacific region, contributing 42.6% of total revenue.

In Q2 2024, the Europe region experienced an upward trajectory in Recycled High-Density Polyethylene (R-HDPE) pricing, influenced by a confluence of robust demand and constrained supply dynamics. Key factors underpinning this price escalation include heightened consumption from downstream sectors such as packaging, construction, and automotive industries. This positive pricing environment continued into the latter half of Q2, with a further 4.5% increase, culminating in a quarter-ending price of USD 800/MT for R-HDPE blow moulding grade on FOB Tianjin basis. These trends indicate a bullish market sentiment, with increased cost pressures being efficiently passed through the supply chain, reflecting a positive pricing environment for R-HDPE in China and the broader APAC region.

The national average price of colour HDPE also increased over the past month. It is now trading at 14.59 cents per pound, compared with 8.63 cents last month, representing a boost of 69%. Some regions are paying as much as 18.50 cents for the plastic.

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