LDPE Procurement, Procurement Intelligence, Cost and Pricing Analysis Report 2030

LDPE Cost and Pricing Analysis

This LDPE procurement intelligence report dives deep into the cost structure associated with LDPE production. The three main cost categories are: direct, indirect, and overhead costs. Direct costs encompass the core expenses like raw materials (including ethylene, a key component), labor, energy, equipment, packaging, and transportation. Fluctuations in these areas can significantly impact the overall cost picture.

As a real-world example, Europe’s LDPE market saw a price decline in Q3 2023 due to weak demand from downstream industries. Film-grade LDPE prices in the U.K. dropped to USD 1,342/MT by September. This slump stemmed from several factors: persistently low ethylene feedstock prices, reduced seasonal demand during summer holidays, and dampened consumer spending caused by rising interest rates, inflation, and a slowdown in the construction sector’s infrastructure projects.

Order your copy of the LDPE category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

At the end of Q3 2023, LDPE prices in the North American region reached USD 1,289/MT. In Asia, film-grade LDPE prices settled at USD 992/MT at the end of September 2023.

Operational Capabilities – LDPE

Years of Experience – 25%

Industries Served – 20%

Geographic Service Provision – 15%

Employee Strength – 12%

Revenue – 12%

Certification – 8%

Clientele – 8%

Functional Capabilities – LDPE

By Service Type

Production Capacity – 30%

Test Methods (ASTM) – 17%

By Characteristics

Purity – 15%

Grade – 12%

Density – 10%

Melt Index – 8%

Temperature – 8%

Rate Benchmarking

The geographical location, scale of business, type of business, and industry served play a vital factor in analyzing the rate benchmarking of the LDPE category.

Asia Pacific is one of the leading manufacturing regions for polyethylene and ethylene. Many plastics and polymer manufacturers moved their facilities or operations to China for cost-effective reasons. The abundance of cheap labor, specialized production units, and the presence of multiple manufacturing units spread throughout the country help companies take advantage of economies of scale and have better negotiations with suppliers.

For instance, for packaging materials, large corporations such as Nestle, Philips, and Samsung outsource their manufacturing operations. Nestle outsourced its plastic packaging to a specialized manufacturer, which enabled the company to produce more sustainable packaging while maintaining the high quality and sturdiness of the product.

Compared to the U.S., China is still considered a world factory. The wages for labor in China can range around USD 5 – 15 per hour compared to USD 35 – 45 per hour in the U.S. On average, it has been found that workers in the plastic film sheet industry have earned USD 1,500 – 1,600 per month since 2020. The cost differences between U.S. and China manufacturing can be almost around 25 – 35%. Differences can vary based on production volume, negotiations with vendors, locations, quality, industry expertise, etc.

List of Key Suppliers

• The Dow Chemical Company
• LyondellBasell Industries N.V.
• SABIC
• Chevron Phillips Chemical
• BASF SE
• ExxonMobil Corporation
• LG Chem Ltd
• Westlake Corporation
• Formosa Plastics Corporation
• China Petroleum & Chemical Corporation (Sinopec)
• INEOS AG
• Dupont De Nemours Inc.

Supplier Newsletter

• In December 2022, 360Training acquired AdvanceOnline, an online and in-person training solution provider. The acquisition would help 360Training to expand its OSHA online outreach program and grow its library of courses through DOT transportation safety training courses.
• In May 2022, The American Fork, a learning content and design services provider, acquired CoreAxis, a design, training, and development provider. Following the acquisition, the company was rebranded as ELB Learning. The acquisition will add more training services to ELB Learning’s custom-based content and learning development services-based portfolios.
• In February 2022, Deakin University’s division dedicated to corporate LDPE, DeakinCo., partnered with Tata Consultancy Services (TCS). The deal is expected to address the digital skills gap in Australia and collaboratively create a corporate learning program tailored for business leaders, senior management, and executives. The focus areas of learning include emerging technologies such as AI, ML, data analytics, and robotics.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Office Supplies Procurement Intelligence Report, 2024 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Office Furniture Procurement Intelligence Report, 2024 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape) 

LDPE Procurement Intelligence Report Scope

• LDPE Category Growth Rate : CAGR of 4.63% from 2023 to 2030
• Pricing Growth Outlook : 10% – 12% (Annually)
• Pricing Models : Volume-based, contract-based, spot-price based
• Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
• Supplier Selection Criteria: Production capacity, grade types, LDPE characteristics (temperature, density and melt index), ASTM methods, operational capabilities, quality measures, certifications, data privacy regulations, and others
• Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions