The plastics market is shifting as mobility, electronics, and supply dynamics continue to evolve heading into year-end. Hybrid-vehicle demand continues to strengthen, supporting the ongoing need for lightweight, high-performance materials across powertrain and electrical systems. In E&E and industrial markets, steady growth and increasing interest in recycled content are shaping material selection. Commodity resins such as PP and PE remain relatively stable, influenced by operating rates, export activity, and cautious buying. Meanwhile, engineering resins show a mix of flat pricing, oversupply pressures, and seasonal softness. The sections below outline the key developments across each segment..
MARKET SPOTLIGHT
Mobility
Demand for hybrid-electric vehicles has increased in 2025 in the U.S., driven by consumers seeking efficiency benefits without the cost or charging limitations associated with fully electric vehicles. Industry reporting shows that hybrid sales grew even as EV demand softened, supported by strong OEM production levels and heightened consumer interest in a practical, lower-risk transition technology. This shift has direct implications for material suppliers: hybrids require extensive lightweighting to offset dual powertrain mass and rely heavily on advanced polymers in cooling systems, electrical architectures, housings, and underhood environments—preserving, and, in many cases, increasing, demand for engineering plastics. 1, 2, 3
E&E/Industrial
Strong growth in plastics demand for E&E is expected at healthy rates (5-10%+ annually), thanks to rising demand for consumer applications, infrastructure (wiring/cabling), renewables, data centers, and smart devices. 4
There has been a notable shift toward sustainable material options and growth in recycled plastics used in electronics, driven by environmental regulations, sustainability goals, and material cost pressures. 5
PRODUCT NEWS
Polypropylene
PGP was down $0.01/lb. in November. CDI and CMA both reported out down $0.01/lb. as well.6, 7
CDI is estimating that PGP will be down $0.005/lb. in December and up $0.015/lb. in January. 6
ACC and CDI report operating rates at 69.9% and DOH at 36.6 days in October. Operating rates decreased by 2.6% and DOH increased by 2.4 days from September.6, 8
Export7: Improved activity observed in the export markets recently due to higher demand as a result of lower prices for PP, with adjusted PGP pricing and expectations in the market that prices will rebound in Q1 2026.
Mexico7: Supply is reported as being adequate as producers in the U.S. continue to run their units with discipline to avoid margin erosion, and converters are only buying what they need.
Polyethylene
PE settled flat in November. CDI and CMA both reported flat as well. 6, 7
CDI is estimating PE to be flat in December and up $0.03/lb. in January. 6
Some suppliers have issued price increase letters between $0.03/lb. and $0.05/lb. for December and between $0.05/lb. and $0.07/lb. for January.
ACC and CDI report operating rates at 87.3% (varies by segment) and DOH at 44.3 for all of PE in October. Operating rates for all PE decreased by 3.5% and DOH decreased by 1.9 days (all PE) from September. 6, 8
CMA/IHS will have an Non-Market Adjustment (NMA) in January 2026, but the amount is still TBD. 7
Export7: Increased activity observed in the last weeks of November due to the market anticipating a small short-term price increase. Activity is expected to slow as year-end approaches.
Mexico7: Stable demand is reported, but the expectation of price increase in the coming weeks might increase purchasing in the short term. Braskem Idesa reported stable production.
ABS6
ABS prices finalize steady in November as seasonal slowdown begins.
Market sources indicate softer demand in November, citing oversupply and year-end destocking.
Feedstocks continue to see downward trend heading further into Q4.
Freight rates spiked in November but are expected to be steady-to-soft in the near term.
Novelis plant fire directly impacted orders for certain automotive parts and models.
Polycarbonate6
PC November contract prices roll over from October.
PC domestic production is 12.4% lower year to date versus 2024.
PC market is oversupplied globally.
U.S. trade data is not available due to the government shutdown.
Polystyrene
November polystyrene (PS) contract prices at both ICIS and CMA indices stayed flat, preparing for a likely increase in December. 6, 7
The original outlook announced was “hold steady throughout the remainder of this year”, but per ICIS, an unseasonable and unexpected increase in Benzene pricing has caused increases at the producers. 8
2026 sentiment continues to be muted, flat to 2025.6,
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