Resin To Riches: Weekly Plastic Market Insights

Polymer Global Analysis

Resin To Riches: Weekly Plastic Market Insights

• General Thoughts: Western polymer markets, on average, have seen their prices rise so far in 1Q25 relative to a muted response in Asia, and we view Western price strength as only emboldening Chinese capacity additions.
• Polyethylene (PE): US and Europe spot PE prices have increased relative to Asia during the past month. Still, the fundamental factors supporting this strength are lessening, and we discuss recent US price hike nominations.   
• Polypropylene (PP): US PP prices have found support from upward trending spot PGP prices YTD – we observe PP price premiums in Western markets relative to Asia on the rise WoW, setting up a likely reversal later in 2025.
• Polyvinyl Chloride (PVC): The Global PVC market is broadly weak, with US spot PVC prices at the low end of the range – we view US downside risk as low, and its prospects for improvement are likely to rise in late 1Q25.
• Other Sector Developments: Global chemical feedstock ratios imply a flatter cost curve YoY, which means lower polymer prices and US margins – global polymer prices will likely struggle to exceed 1Q24 average levels in 1Q25.

Exhibit 1 – Chart of the Day: US and Europe spot polyethylene (PE) spot prices reflect the greatest strength MoM. 

Source: Bloomberg, C-MACC Analysis, February 2025