Polyethylene - linear low density (LLDPE) Uses and Market Data

The popularity of linear low density polyethylene (LLDPE) is due to its higher tensile strength and superior impact and puncture resistance than its low density polyethylene (LDPE) rival. This has allowed converters to make thinner films without sacrificing strength, saving material and reducing costs. LLDPE’s good toughness relative to other products has also opened up new application areas.

However, LLDPE is not as easy to process as LDPE and it has poorer clarity. As a result, converters often use blends with LDPE to improve these properties.

Globally, around 82% of LLDPE goes into film applications such as food and non-food packaging, shrink/stretch film and non-packaging uses. The trend in food packaging films is towards high performance film structures that are less permeable to increase shelf life and enhance flavours. Growth is occurring from the transition of items packaged in rigid containers to high quality flexible packages.

LLDPE is being used in extrusion coating applications where it helps protect the contents of liquid containers, primarily for paper and paperboard packaging.

Non-food packaging applications are requiring stronger films such as consumer, industrial and agricultural uses.

The injection moulding sector, which accounts for around 5% of LLDPE demand, has outlets such as lawn and garden products, kitchen accessories, luggage and furniture parts, recreational products and toys.

The development of metallocene or single site catalyst technology has resulted in new LLDPE resins which allow significant downgauging of films as well as faster film processing and more stable operations. Applications include multi-layer cast stretch film, agricultural greenhouse film, medium to heavy duty bags and lamination packaging film. Easy processing LLDPE grades are also being introduced. Metallocene-based LLDPE may also penetrate non-polyethylene markets such as metals, paper and polyvinyl chloride (PVC).

Much of the growth in LLDPE has been in the replacement of LDPE and it has now overtaken LDPE in terms of market size to be the second largest PE after high density polyethylene (HDPE). While its penetration of LDPE markets appears to have completed in mature markets such as North America, Western Europe and Japan, the introduction of easy processing LLDPE could lead to further substitution.

Demand growth halted

Up until 2008, global demand for LLDPE was growing at 6-7%/year driven by growth in Asia, in particular China. Eastern and central Europe where market penetration is low has also seen high growth rates.

However, the second half of 2008 witnessed an unprecedented demand crash as a result of the credit crisis and its impact on economic activity. With declining polymer prices exacerbated by falling feedstock prices, purchasers withdrew from the market and inventories along the value chain reduced significantly. This resulted in a fall in demand being far beyond that anticipated by the economic downturn.

The global consumption of LLDPE fell by an estimated 1.2% in 2008 to around 19m tonnes, after growing 5.6% in 2007, according to the consultant Nexant ChemSystems. In spite of this, LLDPE still has a bright demand outlook with growth projected at nearly 6%/year over the next seven years. It is notable that single site/metallocene LLDPE was one area that did continue to grow in 2008, albeit at low rates.

The addition of new LLDPE capacity was limited in 2008, partly due to delays in new plants starting up. This will change as a wave of new capacity comes on stream in the 2009-2012 period. This investment is focussed in regions with advantaged feedstock such as the Middle East or high growth such as Asia.

As this substantial capacity is scheduled to start up during a time of weak demand, the industry will come under immense pressure due to falling operating rates. Mature markets such as Western Europe and North America will see limited capacity additions, and even closures of less competitive units.

While demand is expected to be heavily focussed in China, Western Europe and North America will also see growth, which although low in terms of growth rates will still be sizeable in terms of absolute demand increment. Over the next few years, global trade patterns will evolve noticeably as the US and Western Europe become major net importers of LLDPE while the Middle East takes its position as supplier to the world, concludes Nexant ChemSystems.

Updated: March 2009. Source: ChemSystems PolyOlefins Planning Service (POPS).

Webinar - Understanding Polyethylene margins 

Polyethylene linear low density Price Reports

ICIS pricing gives you access on a weekly or real time basis to the latest price movements and critical market commentary on the Polyethylene linear low density market. Click below to see a quarterly market overview.
More about Polyethylene linear low density Price Reports

Polyethylene linear low density Process Technologies

Linear low density polyethylene (LLDPE) is produced by the addition of alpha-olefins - butene, hexene or octene - during the polymerisation of ethylene to give a resin with a similar density to LDPE but the linearity of HDPE. Solution, slurry or gas phase processes are used to make LLDPE but the licensing of low-cost gas phase technology by Union Carbide (now Univation) and later BP Chemicals (Ineos) has contributed to the popularity of this resin. Many processes can swing between LLDPE and HDPE production although many plants tend to be dedicated to one of the two resins.
More about Polyethylene linear low density Process Technologies

Search for Polyethylene linear low density Suppliers

If you are sourcing Polyethylene linear low density products and services, use ICIS search for fast and accurate results. ICIS search is the search engine dedicated to the chemical industry – we show you only relevant results - search now.