Resin To Riches: Weekly Plastic Market Insights

Polymer Global Analysis

Resin To Riches: Weekly Plastic Market Insights

• General Thoughts: On average, North American (and Middle East) ethylene-chain cost advantages remain high relative to Asia and Europe. However, price weakness amid oversupply and a flatter cost curve is a margin risk.
• Polyethylene (PE): Global spot PE prices fell last week, with US prices falling relative to Europe and Asia – US integrated margins are back at 2019 levels, but Europe and Asia margins, on average, remain far below 2019.  
• Polypropylene (PP): US spot PP prices increased relative to Europe and Asia, which saw flat-to-down prices last week, and domestic spot PP prices increased relative to spot PGP, which was not the case in Asia and Europe.
• Polyvinyl Chloride (PVC): We discuss a bit of support WoW in US PVC spot values, which reflect levels below Europe and Asia, on average, that limit US price downside risk despite still weak demand and oversupply.
• Other Sector Developments: We highlight crude oil and US natural gas price levels, their 1Q24 trends, and our view that the current feedstock price setting implies lower YoY global polymer prices and US margins in 1Q25.

Exhibit 1 – Chart of the Day: Integrated spot polyethylene profits fall into 2025 amid oversupply and weak demand.

Source: Bloomberg, C-MACC Analysis, January 2025