Resin To Riches: Weekly Plastic Market Insights

Polymer Global Analysis

Resin To Riches: Weekly Plastic Market Insights

• General Thoughts: Global polymer market demand has fallen short of most expectations in 1Q25, causing plant shutdowns in Europe and SE Asia, while low-cost areas deal with ample inventory and related operating rate cuts.
• Polyethylene (PE): US and European spot PE prices rose further WoW relative to Asia. However, the fundamental factors supporting this strength are fading – higher oil and outages are needed to keep the positive momentum.   
• Polypropylene (PP): US PP prices have found support from strengthening spot PGP prices YTD – Western price premiums relative to Asia are rising in 1Q25, elevating the risk of a Western price reversal by mid-2025.
• Polyvinyl Chloride (PVC): The Global PVC market is weak, with US spot PVC prices at the low end of the range as export market opportunities still appear limited – prospects for market improvement will likely rise by late 1Q25.
• Other Sector Developments: Global chemical feedstock ratios imply a flatter cost curve YoY, which means lower polymer prices, and we think this could boost efforts among some to integrate their feedstock positions further.

Exhibit 1 – Chart of the Day: European polymer prices are among the highest globally, a relative plus for its recyclers. 

Source: Bloomberg, C-MACC Analysis, February 2025