As Q2 kicks off, shifting global trade dynamics, evolving consumer expectations, and rapid advancements in technology continue to influence market trends. In this month’s update, we explore the growing role of AI in packaging, changing mobility preferences, and how tariff uncertainty is shaping resin exports and regional demand. Read on for key insights across end markets, resin categories, and regional developments.
MARKET SPOTLIGHT
Mobility
Despite impending U.S. tariffs on imports from Mexico and Canada, global automotive suppliers are unlikely to relocate factories to the U.S., citing a lack of domestic capacity and long-established infrastructure in Mexico. 1
Many drivers are feeling overwhelmed by the increasing complexity of high-tech features in modern cars, such as touch screens, voice assistants, and sensor-equipped door handles. While consumers still appreciate useful features like heated seats and wireless charging, many find newer technologies unintuitive, distracting, or unreliable. 2
Packaging
Artificial Intelligence (AI) is transforming the packaging industry, streamlining everything from supply chains and quality control to design and development. Major players like Walmart and Amazon are already using AI to optimize inventory, track consumer trends, and reduce packaging waste through smarter, more sustainable solutions. 3
As consumers grow more informed and demand greater transparency, brands are embracing “sensible sustainability” by adopting clear, measurable practices. Tools like QR codes are helping bridge the gap—educating consumers on recycling and disposal while boosting trust and sales performance for products with verifiable sustainability claims. 4
PRODUCT NEWS
Polypropylene
PGP was down $0.04/lb. in March. CDI and CMA both reported out down $0.04/lb. as well.5, 6
CDI is estimating that PGP will be down $0.02/lb. in April and up $0.01/lb. in May.5
ACC and CDI report operating rates at 74.8% and DOH at 39.6 days in February. Operating rates increased by 2.5% and DOH increased by .01 days from January 5, 7
Export8: Traders report limited export volumes, as current prices are not competitive in the global market.
Most transactions are being driven by LATAM customers, but due to ongoing tariff uncertainty, this momentum is likely to be short-lived.
Mexico8: March saw steady demand, with buyers taking advantage of falling prices to replenish inventories despite ongoing tariff uncertainty.
April demand is off to a healthy start, supported by continued market activity, though it is expected to slow by mid-month ahead of the Easter holiday week. Propylene contracts are projected to decline further in April, leading to a $0.01/lb. decrease in DAP Laredo quotes.
Local producer Indelpro is operating at steady levels.
Polyethylene
PE settled flat in March. CDI and CMA both reported flat as well.5, 6
CDI is estimating PE to be flat in April and flat in May.5
Several suppliers have issued price increase letters for April at $0.05/lb.
ACC and CDI report operating rates at 94.9% (varies by segment) and DOH at 51.9 for all of PE in February. Operating rates for all PE increased by 7.1% and DOH decreased by 2.1 days (all PE) from January.5, 7
Export8: PE export volumes are expected to rise in April, driven by lower prices that are creating strong buying incentives for international customers. However, newly announced U.S. tariffs—and potential retaliatory measures from affected countries—could negatively impact demand in the coming months, particularly from Europe and Asia.
Despite tariff concerns, PE export prices continue to decline, prompting larger shipments, especially to LATAM markets. Still, ongoing global uncertainties may limit foreign buyer confidence moving forward.
Mexico8: Market participants are closely watching the potential impact of proposed U.S. tariffs on imports from Mexico and Canada.
Despite the uncertainty, March showed improved market performance compared to January and February.
Increased buying activity is anticipated ahead of the Easter holiday week, which begins April 13.
Supply remains abundant, with inventories stocked in anticipation of possible price increases tied to tariff concerns. LDPE GP prices are stable, while DAP Laredo quotes for other PE grades have declined by $0.01/lb.
Local producer Braskem Idesa continues to operate at steady rates.
ABS5
Demand remains soft, but seeing uptick in March from February.
ABS imports into Mexico see a significant increase in January.
ABS February contract prices finalized flat.
March contract prices expected to rollover from February.
Started to see significant decreases in March freight rates.
Cost gap between Asian imports widens; domestic ABS remains higher.
Polycarbonate5
PC March contract prices roll over.
PC demand remains weak, especially in automotive.
PC market is oversupplied in the U.S.
U.S. PC exports are predominantly to Mexico and Canada.
Reciprocal tariff uncertainty looms.
Polystyrene
March price discussions unchanged since early March. 5
AFPM discussions indicate lackluster demand in 2025.6
Feedstocks see lower spot prices this week.5
February ACC data shows improvement in supply and demand but continues to be soft.7
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