July saw steady performance across healthcare and packaging markets. U.S. medical suppliers advanced reshoring and automation efforts, while potential pharmaceutical tariffs created uncertainty. Packaging innovation remained strong with investments in circular feedstocks and sustainable materials. Resin pricing was mostly stable, with gains in polystyrene and improved operating rates in polyethylene, alongside shifting global trade and tariff impacts in polypropylene, polycarbonate, and ABS.
MARKET SPOTLIGHT
Healthcare
U.S. Medical Suppliers Flex for Reshoring Demand in Post-COVID Market - U.S. medical suppliers are aggressively reshoring production in response to pandemic-era supply chain disruptions, despite cost and capital barriers. Companies like SafeSource Direct and United Safety Technology emphasize automation and innovation as key to competing with low-cost foreign imports. However, high labor costs and hospital procurement priorities challenge domestic adoption. Smaller players are urged to diversify offerings and collaborate closely with healthcare systems to maintain relevance. 1
Trump’s 200% Tariff Threat Could Send Shockwaves Through Pharma Supply Chains - Trump’s proposed 200% tariff on imported pharmaceuticals is causing alarm across global supply chains, with critics warning it could backfire by raising drug costs and disrupting availability. While intended to push domestic manufacturing, experts argue the timelines are unrealistic and could penalize U.S. patients and international suppliers alike. Pharma companies are scrambling to invest billions in U.S. capacity to preempt policy changes. 2
Packaging
Dow is expanding access to circular resin feedstocks through a strategic investment in Xycle, an advanced recycling company. The partnership will support a new pyrolysis facility in Rotterdam capable of processing 21 kt/year of hard-to-recycle plastic waste into circular feedstock, which Dow will use to produce virgin-quality resins. The facility is expected to be operational by Q4 2026. 3
USDA Foreign Agricultural Service launched a $10 million Sustainable Packaging Innovation Lab (SPIL) to drive export-ready packaging solutions for fresh produce. The initiative aims to accelerate research into new sustainable materials—including compostable, recyclable, and bio-based resins—supporting specialty crop exporters and advancing packaging performance, traceability, and food safety. 4
PRODUCT NEWS
Polypropylene
PGP was up $0.01/lb. in July. CDI and CMA both reported out down $0.01/lb. as well.5, 6
CDI is estimating that PGP will be flat in August and down $0.005/lb. in September.5
ACC & CDI report operating rates at 73.5% and DOH at 36.8 days in June. Operating rates decreased by 0.7% & DOH increased by 0.9 days from May.5, 7
Export6: Steady prices reported; PGP movement from June and July had minimal impact on prices. Demand continues to be similar to the previous three months.
Mexico6: It is reported that the decrease in PGP supply could stimulate demand for August. Logistical challenges have caused delivery delays. New offers from the local producer are noted to be competitive.
Polyethylene
PE settled flat in July. CDI and CMA both reported flat as well.5, 6
CDI is estimating PE to be flat in August and flat in September.5
Some suppliers have issued price increase letters for August at $0.05/lb.
ACC and CDI report operating rates at 95.9% (varies by segment) and DOH at 45.9 for all of PE in June. Operating rates for all PE increased by 10.6% and DOH decreased by 4.8 days (all PE) from May.5, 7
Export6: It was reported that traders are finding it difficult to close new deals. No significant changes in prices reported compared to June, as buyers are eager for price decreases. Latin America continues to be the most competitive region with the slimmest margins for PE Exports from the U.S., compared to Asia and Europe.
Mexico6: The second half of the month was slower than the first half, though some sellers report July was a better month compared to June. It was noted that July was challenging on the logistics side, as a result of terminals and bagging facilities operating at full capacity. Offers have been reported at rollover or with slight increases. The local producer is expected to re-commence production by mid-August.
ABS5
July ABS contract prices remain unchanged.
Feedstocks continue to see downward movement.
25% South Korea tariff effective August 1.
Polycarbonate5
PC July contract prices are forecasted to be lower.
PC total demand is 9% lower year-to-date versus 2024.
PC market is oversupplied globally.
U.S. PC exports are predominantly to Mexico and Canada.
Polystyrene5
July PS indices increased by $0.02/lb. and Ineos announced a $0.03/lb. price increase for August.
Unstable raw material costs due to tariff uncertainty and tightening of raw materials have led to expected increases in the range of $0.02/lb. to $0.05/lb.
Demand for June 2025 was 2% lower than June 2024, and supply is 4% lower when compared to the same period last calendar year..
MyNexeo
Shop 3D
Careers
LinkedIn
Language
Blog
MyNexeo
MyNexeo
Careers
LinkedIn
