We’re excited to launch the Resin Report, your go-to source for the latest industry insights, market trends, and key updates in the world of thermoplastics. At Nexeo Plastics, we’re committed to keeping you informed on the factors shaping supply, demand, and innovation—helping you make smarter, more strategic decisions.
MARKET SPOTLIGHT
Packaging
The flexible packaging market is experiencing unprecedented growth, with its value expected to reach $400 billion by 2032, according to Arizton. 1
This dynamic sector is being shaped by advancements in materials, shifting market dynamics, and evolving consumer preferences. As the industry transforms, trends in sustainability, convenience, and innovation are driving the development of packaging solutions that are lighter, smarter, and more environmentally conscious. 2
Mobility
The automotive industry is grappling with the transition to software-defined vehicles, which promise to revolutionize the driving experience and unlock new revenue streams for automakers. These vehicles can gain functionality through over-the-air updates and streamline production by reducing hardware dependency. While technically feasible, challenges lie in overcoming legacy systems, fragmented software versions, and ingrained organizational practices. 3
General Motors (GM) is discontinuing its Cruise robotaxi program to focus on integrating its self-driving technology into advanced driver-assistance systems (ADAS) and personal autonomous vehicles. The decision aims to simplify operations, reduce costs, and align with GM’s strategic priorities. By merging Cruise’s resources with its in-house teams, GM plans to accelerate progress in driver-assistance technologies and prepare for Level 3 automation. 4
Driver monitoring systems (DMS) are being developed to detect intoxication, as U.S. law currently will require this to be implemented in all vehicles by 2027. Both Bosch and Magna are developing systems to monitor eye movement, such as prolonged staring or slow focus shifts, and to collect a sample breath analysis that is scanned for both CO2 and alcohol. If the system does detect alcohol, the system prompts the driver to look directly at the driver monitoring camera, which then looks for nystagmus. 5
PRODUCT NEWS
Polypropylene
PGP was up $0.05/lb. in January. CDI and CMA both reported out up $0.05/lb. as well.6,7
CDI is estimating that PGP will be up $0.01/lb. in February and up $0.015/lb. in March.6
Four suppliers have issued price increase letters for February at $0.02/lb.-$0.03/lb.
ACC and CDI report operating rates at 67.8% and DOH at 43.5 days in December. Operating rates decreased by 5.7% and DOH decreased by 2.3 days from November. 6,8
Export: Prices increased in February, with average weekly increases of $0.015/lb. so far this month, primarily driven by tight supply and expectations around the PGP market. Demand for U.S. exported PP remains weak, as importers view U.S.-produced PP as uncompetitive compared to PP produced in Asia and the Middle East.9
Mexico: February began with price increases due to rising PGP expectations, producers' attempts to improve February margins, and limited PP supply availability. Additional increases are anticipated, driven by significant concerns over potential looming tariffs. However, the market remains cautiously optimistic that the U.S. and Mexican governments will reach a long-term agreement. Continued supply chain delays are being reported, adding several weeks to transit times for U.S. and Canadian-produced PP shipments to Mexico. Local producer Indelpro is running at stable rates. 9
Polyethylene
PE settled up $0.05/lb. in January. CDI and CMA both reported up $0.05/lb. as well.6,7
CDI is estimating PE to be flat in February and flat in March. 6
Suppliers have issued price increase letters for February at $0.05/lb.
ACC and CDI report operating rates at 96.9% (varies by segment) and DOH at 45.3 for all of PE in December. Operating rates for all PE decreased by 3.1% and DOH decreased by 6.4 days (all PE) from November.6,8
Export: Traders report a slow start to demand in Q1 CY25, with steep price increases further delaying activity. Export prices are approaching non-competitive levels compared to Asian and Middle Eastern producers in most high-volume import markets. Port bottlenecks from 2024 have largely been cleared, though some delays persist as steamship lines skipped calls at the Port of Houston, causing additional disruptions into February. U.S. export statistics show December set a new record for PE exports, reaching 2.97 billion lbs., while 2024 marked a record year for U.S. PE exports at 32 billion lbs.9
Mexico: Initial February offers started with increases of $0.02/lb. to $0.03/lb., with some suppliers pushing for even higher prices. Few confirmed transactions were reported in the first half of February. These high prices are expected to keep demand subdued, especially as some January shipments have been delayed and are yet to reach their final destinations in Mexico. Product limitations for HDPE HMW and HDPE BM are being reported in the market. Logistics challenges persist, including congested and embargoed terminals, long pack-out wait times, and slow border crossings. Local producer Braskem Idesa is operating at regular rates, and PEMEX has successfully started up its LDPE unit, with resin expected to be available in the coming weeks. 9
ABS6
January restocking continues to be below expectations.
Contract prices in January are forecasted to roll over from December.
Operating rates to remain steady with weakened activity in the new year.
Demand continues to be lackluster, but there is optimism in the market for an increase later in Q1 2025.
January freight rates see an increase from December.
The price gap between domestic ABS and imports sees a slight decrease.
Polycarbonate6
PC January contract prices settle lower.
PC demand continues to be weak in many application sectors, especially in automotive.
PC market is oversupplied in U.S.
U.S. PC exports are predominantly to Mexico and Canada.
Covestro announces new U.S. compounding plant.
Polystyrene
ACC final data for December shows decrease in supply and demand.8
January contract prices forecasted at a $0.03/lb. increase.6
Benzene sees an increase in spot trade prices this week.6
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