As hybrid vehicles gain ground over EVs, and global suppliers align with China’s expanding auto industry, mobility trends are reshaping demand across material markets. In resin, PP and PE prices increased in June amid firmer feedstock costs, steady operating rates, and regional supply shifts—especially in Mexico and LATAM. PS faced feedstock-driven pressure, while PC and ABS remained mostly stable but could shift as freight rates and tariff uncertainty evolve.
MARKET SPOTLIGHT
Mobility
Hybrids Are Back — and Better Than Ever: As EV adoption slows due to high costs and charging limitations, hybrid vehicles are making a strong comeback. In early 2025, hybrids accounted for 14% of all new U.S. vehicle sales—twice the share of fully electric cars. Automakers like Toyota, Ford, and Honda are doubling down, driven by rising demand and notable improvements in performance and fuel efficiency. Today’s hybrids deliver a smoother, more powerful ride—often at a price comparable to gas-only models. With potential policy changes impacting EV tax credits, hybrids are becoming an increasingly attractive and practical option for many drivers. 1
Global Suppliers Ride the Wave of China’s Auto Expansion: As Chinese automakers accelerate global production, major suppliers like Magna, Forvia, Aptiv, and Tenneco are seizing new growth opportunities. Leveraging their global footprints, these companies are supporting Chinese brands expanding into Europe, Southeast Asia, and beyond. From EV assembly in Austria to seat production in Thailand, partnerships are forming rapidly—often to help Chinese OEMs bypass tariffs and scale efficiently. The trend reflects deeper collaboration between Western suppliers and China’s fast-growing auto industry. 2
PRODUCT NEWS
Polypropylene
PGP was up $0.005/lb. in June. CDI and CMA both reported out up $0.005/lb. as well.3, 4
CDI is estimating that PGP will be up $0.015/lb. in July and up $0.03/lb. in August.3
ACC and CDI report operating rates at 74.2% and DOH at 35.9 days in May. Operating rates decreased by 0.8% and DOH decreased by 3.0 days from April.3, 5
Mexico4: Market sentiment remained stable through June.
NAM PGP prices rose by $0.005/lb. prompting slight price increases for June and July.
July DAP Laredo pricing for homopolymer is expected to increase by $0.01/lb., with some suppliers targeting hikes of $0.02–$0.03/lb. in the coming weeks.
Indelpro, the domestic supplier, continues to meet market needs with steady production
Asian PP offers have increased, though they remain largely uncompetitive in the region
PP import volumes into Mexico rose 6% from January to April 2025 compared to the same period in 2024.
Polyethylene
PE settled up $0.03/lb. in June. CDI and CMA both reported up $0.03/lb. as well.3, 4
CDI is estimating PE to be flat in July and up $0.03/lb. in August.3
Some suppliers have issued price increase letters for July at $0.06/lb. and $0.07/lb.
ACC and CDI report operating rates at 85.3% (varies by segment) and DOH at 50.7 for all of PE in May. Operating rates for all PE decreased by 1.1% and DOH decreased by 4.8 days (all PE) from April.3, 5
Export4: Limited trading activity was reported in NAM export markets over the past two weeks.
July price offers are trending higher, though exporters aim to preserve global competitiveness.
Global resin sentiment is softening, as oil prices stabilize around the mid-$60s per barrel and PE demand remains weak in key markets.
LATAM exports strengthened in June as buyers looked to secure supply ahead of hurricane season.
Activity from Asian suppliers in LATAM has increased, supported by declining ocean freight rates.
Mexico4: Early June saw strong market activity, driven by local supply concerns and hurricane season, though momentum slowed in the latter half of the month.
Initial July offers showed price increases of up to $0.03/lb.
Buying activity was limited in early July, with buyers anticipating room to negotiate, though further increases are likely if supply tightens.
Logistics delays continue to affect PE import flows across the northern border.
Braskem Idesa’s planned shutdown is expected to conclude on schedule by late July or early August.
ABS3
June ABS contract prices continue to hold steady.
Pre-tariff ABS inventory heard to be thinning, increasing pressure on potential price increases.
Freight rates surge in June, returning to levels that were last seen in January 2025.
Looking ahead, market sources suggest ABS prices could begin to increase in July.
Cost gap between import vs. domestic ABS decreases as freight rates spike.
U.S. ABS imports continue to see increases, pushing above 35% in April trade data.
Lead times potentially increasing as rearrangement in freight and availability tightens during the U.S.-China tariff pause.
Polycarbonate3
PC contract prices for June rolled over from May.
PC total demand is 10% lower YTD versus 2024.
PC market is oversupplied globally.
U.S. PC exports were predominantly to Mexico and Canada.
Polystyrene3
June PS contract prices are expected to increase from May.
Feedstock increases and styrene outages put upward pressure on PS prices.
June demand is lackluster; May data showed improvement, but demand remains on the low end.
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