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LLDPE (Linear low-density polyethylene)

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    LLDPE (Linear low-density polyethylene) Suppliers

    LLDPE (Linear low-density polyethylene) Supplier

    Find the right-fit lldpe (linear low-density polyethylene) supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    BASF SE
    Location
    Jackson, Mississipi
    Duns number
    3862211
    D&B SER Rating
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    Up to 3 months

    1 9
    1
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Creditsafe Rating

    D/2

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    A 71 - 100

    Very Low Risk

    B 51 - 70

    Low Risk

    C 30 - 50

    Moderate Risk

    D 21 - 29

    High Risk

    E 0 - 20

    Not Rated

    Moody`s ESG Solution
    ESG Profile
    Company and Sector Performance
    59
    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    60
    Social
    59
    Governance
    57
    6 Domains Performance (/100)
    Business behaviour
    62
    Human rights
    68
    Community Environment
    42
    Corporate governance
    60
    Human resources
    61
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    82
    Threat indicators
    B
    83
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    Detecting insecure network settings
    A
    100
    Hacker Chatter
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    D
    62
    DNS Health
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    B
    80
    Application Security
    Detecting common website application vulnerbilities
    B
    81
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    B
    85
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
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    A
    94
    IP Reputation
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    A
    100
    Information Leak
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    Industry Comparison
    basf.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    17
    Workforce Health Safety Issues
    0
    Product Service Issues
    22
    Human Rights Issues
    3
    Production Supply Chain Issues
    35
    Environmental Non Compliance Flags
    74
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    21
    Fraud Issues
    8
    Labor Health Safety Flags
    12
    Regulatory Issues
    13
    Workforce Disputes
    6
    Sanctions
    0
    esg energy transition
    49
    Discrimination Workforce Rights Issues
    3
    esg controversies critical severity
    Yes

    LLDPE (Linear low-density polyethylene) market frequently asked questions

    Beroe’s market intelligence reveals that the worldwide LLDPE production currently stands at 44.6 metric million tons (MMT), and the global demand will grow at a 2-4% CAGR from 2019 through 2024.

    Beroe’s market intelligence reveals that the worldwide LLDPE production currently stands at 44.6 metric million tons (MMT), and the global demand will grow at a 2-4% CAGR from 2019 through 2024.

    Given the COVID-19 impact, demand from the construction and automotive sectors, which collectively account for around 15% of the overall LLDPE market, has declined. Moreover, the prices during Q2 2020 hit record lows, with some manufacturing units shutting down due to workforce scarcity. That said, the consumption of LLDPE in the food & beverage and consumer & personal care industries has remained consistent.

    With a production of 18.6 MMT, Asia Pacific (APAC) will remain at the driver’s seat in the global LLDPE market over the forecast period. In addition, the Asian market will grow at a 3-5% CAGR, given the rising per capita plastic consumption.

    Players in the North American LDPE market majorly prefer contract-based engagement models, and buyers are more inclined toward domestic sourcing due to the higher costs of imported LLDPE. In Europe, the buyers focus on both spot and contract-based models and source LLDPE internally and from Middle East/Asia. Furthermore, the Asian buyers engage in spot buying and source LLDPE locally or from Europe.

    Players in the North American LDPE market majorly prefer contract-based engagement models, and buyers are more inclined toward domestic sourcing due to the higher costs of imported LLDPE. In Europe, the buyers focus on both spot and contract-based models and source LLDPE internally and from Middle East/Asia. Furthermore, the Asian buyers engage in spot buying and source LLDPE locally or from Europe.

    LLDPE manufacturers engage in two types of contract structures - fixed contracts and multi-year contracts. While the former lasts a year on average, the latter lasts 2-3 years. Moreover, market players keep themselves away from multi-year contracts due to high price volatilities.

    LLDPE manufacturers engage in two types of contract structures - fixed contracts and multi-year contracts. While the former lasts a year on average, the latter lasts 2-3 years. Moreover, market players keep themselves away from multi-year contracts due to high price volatilities.

    The US and China have announced capacity additions of 1–2 MMT until December 2020, signaling better demand trends.

    The US and China have announced capacity additions of 1–2 MMT until December 2020, signaling better demand trends.

    LLDPE (Linear low-density polyethylene) market report transcript

    LLDPE (Linear low-density polyethylene) Global Market Outlook

    • The global demand is expected to grow at 2-4 percent CAGR through 2019–2024
    • Asia will remain the key demand driver with an expected growth of 3-5 percent, due to the increase in per capita consumption of plastics
    • Film applications and food/non-food packaging applications are expected to be the key segments driving the growth across the regions especially from the packaged fruits, vegetables to pet food, cosmetics, and pharmaceutical segment

    LLDPE Industry Best Practice

    Engagement models

    • CPG companies generally outsource their packaging requirements to converters, as they helps them to focus on their core business
    • Large-scale converters have high price negotiation power with the resin suppliers on the back of heavy annual volume
    • Consortium buying is still in the nascent stage in the LLDPE market and is not a preferred model

    Contract structures

    Fixed Contract

    • Length of contract: One year on an average
    • Minimum volume in contract: >1,000 MT/year

    Multi-year Contract

    • Length of contract: 2–3 years. However, we have not observed multi-year contracts due to high volatility in the prices

    LLDPE (Linear low-density polyethylene) Global Capacity–Demand Analysis

    Capacity additions are expected in the US and China. Even with these capacity additions, China is expected to be net importer of LLDPE during the forecast period.Increase in new capacities in the US could lead to increased exports into LATAM, Europe, SE Asia, and African countries.

    Market Outlook

    • Capacity Dynamics: The global LLDPE production capacity is expected to increase by 5-6 MMT to touch 50 MMT by 2024, driven by the capacity additions in the US, Asia. Moreover, LLDPE and HDPE can be alternatively used in the same unit and due to better barrier properties, hence there is a huge surge in capacity additions.
    • Demand: The global LLDPE demand is estimated to grow at 2-4 percent, driven by film applications in the packaging segment

    Engagement Outlook

    • The North American market is predominantly contract based, and buyers prefer to source locally, due to higher cost of imported LLDPE
    • Contracts are generally renewed annually•In Asia, buyers engage in spot buying and source both within the region or from Europe/Asia, if arbitrage opportunities are available•In Europe, the buyers source both within the region and from Asia/Middle East. Both spot and contract prices are used
    • The suppliers are willing to enter into a contract, only if the minimum order volume is over 1,000 MT or sometimes over 2,000 MT

    Impact of COVID-19 on LLDPE (Linear low-density polyethylene)

    The LLDPE market was significantly impacted by COVID-19 in Q2 2020, as demand from industrial (construction and automotive) witnessed a steep decline, which resulted in adequate supply and lower demand. The prices in Q2 2020 were traded at record lows and some plants went offline, due to labor shortage.

    • As businesses are faced with unexpected closures and demand uncertainties, LLDPE demand from automotive and construction industries, which accounts for ~15 percent market share, had a major impact
    • LLDPE demand from food & beverages remained healthy and consumer & personal care industry demand remained steady in Q2 2020•
    • emand broadly recovered in all the sectors by Q3 2020

    Raw material supply

    • Availability of feedstock witnessed a surplus in the market with demand drop fromthe industrial segment. Demand from food & beverages remained healthy.

    LLDPE Price volatility

    • With crude oil prices declining, prices for LLDPE witnesseda steep decline, and with adequate supply, Q2 2020 was favorable for the buyers.

    Impact to LLDPE Industry

    • No major impact is expected, as the demand from food & beverages and consumer & home care segment have remained steady, despite COVID-19 pandemic
    • Capacity additions of 1–2 MMT commenced until Dec-20, majorly in China and the US, indicating better demand trends