Resin To Riches: Weekly Plastic Market Insights

Polymer Global Analysis

Resin To Riches: Weekly Plastic Market Insights

• General Thoughts: We highlight the global price premium in low-density polyethylene (PE) relative to linear-low and high-density PE and why global LDPE premiums could remain elevated in the near-to-medium term.
• Polyethylene (PE): Global spot PE prices have broadly improved YTD. However, the momentum has slowed, with the risk of potential price declines rising in the Western markets that have improved notably relative to Asia YTD.   
• Polypropylene (PP): Western PP spot prices have benefited from upstream tightness in polymer-grade propylene YTD compared to Asia, with Asian exports and Western propylene production returns posing a risk to spot prices.  
• Polyvinyl Chloride (PVC): US spot PVC prices reflect some of the lowest levels globally but are caught between high inventories and likely demand improvement ahead in late 1Q25 – US spot PVC downside risk appears low.
• Other Sector Developments: Global chemical feedstock market trends reflect a flattening production cost curve in February compared to January, which, from a feedstock view, suggests lower polymer prices and US margins.

Exhibit 1 – Chart of the Day: Low-density PE continues to command a premium to High- and Linear-Low PE. 

Source: Bloomberg, C-MACC Analysis, February 2025