Analysts with research firm ICIS of Houston took a look at factors impacting PE, PP and PET during a recent online webinar.
PE and PP both have seen major price increases since early 2020 as a result of strong demand and supply constraints. Brian Pruett, senior vice president with the Chemical Data Inc. unit of ICIS, said the PE market might see one or two additional increases this year before the market potentially enters into a price correction.
Regional PP prices could be up again in June, Pruett said, since PGP prices aren’t expected to decline. The lack of shipping container space, as well as higher shipping costs and longer lead times, have made it difficult for foreign PP to enter the domestic market and compete with higher-priced domestic resin.
ICIS Global Editor Joseph Chang said that resin markets could be tight through the fourth quarter, and that end markets could be affected by an increase in decarbonization, with many companies trying to reach net zero by 2050.