High density polyethylene (HDPE) is the third largest commodity thermoplastic. A major outlet for HDPE is in blow-moulding applications such as bottles, packaging containers, drums, fuel tanks for automobiles, toys and house wares. Injection-moulded articles made from HDPE include crates, pallets, packaging containers and caps, paint cans, house wares and toys.
Global demand has been reasonably strong and growing ahead of GDP in most countries. Future global growth is expected to be around 5%/year. Regions expected to exhibit growth rates above average include Central and Eastern Europe, South America, Asia in particular China, the Middle East and Africa. A large amount of export-oriented HDPE capacity is being commissioned in the Middle East with product not only destined for Asia but also Europe and possibly the US.
HDPE is produced by catalytic polymerisation of ethylene in either slurry (suspension), solution or gas phase reactors. The choice of catalyst and/or the use of bimodal processes are used to modulate the quality of the output.
High density polyethylene is a thermosetting white solid whose molecular chains are comparatively straight and closely aligned. It is resistant to most chemicals, insoluble in organic solvents and has high impact and tensile strength.
Polyethylene (PE) Margin Reports
ICIS pricing’s weekly PE margin reports (Europe and Asia) are designed to complement ICIS's highly regarded pricing data. They assess producer cash costs and cash margins for PE by modelling raw material and key variable manufacturing costs, co-product credits and product yields across the business from feedstock naphtha or ethane through ethylene to PE.
Watch a video about how the margin reports are put together here
Combining ICIS pricing’s benchmark price assessments with feedstock yield models from Linde Engineering the reports provide a clear indication of the direction of business cash costs and cash margins, forming a basis for informed market positioning by sellers, buyers and traders.
Find out more by visiting https://www.icis.com/staticpages/margin.htm