Sustainability and smart mobility are in the spotlight, with extended-range EVs gaining traction and packaging teams pushing for greener materials. PP and PE held flat in May, but exports jumped. Mexico’s market is steady, and some buyers are restocking. Engineering resins are still dealing with soft demand and plenty of supply. Modest price bumps could be coming soon.
MARKET SPOTLIGHT
Packaging
Material innovation is critical: Companies are prioritizing lightweighting, recycled content, and compostable materials to meet performance standards, scale production, and align with sustainability goals—despite ongoing cost and regulatory pressures. 1
Functionality must accompany sustainability: 91% of surveyed companies emphasized product protection as essential, demonstrating that effective sustainable packaging must balance environmental responsibility with durability and capabilities. 1
Mobility
Extended-range EVs (EREVs) gain momentum: Automakers like Stellantis, Nissan, and Ford are launching new EREVs that deliver long electric-only range with a gasoline generator backup , providing the flexibility and confidence consumers seek amid charging infrastructure gaps. 2
Bridging the EV adoption gap: With all-electric drive and range-extending gasoline generators, EREVs offer a middle ground between hybrids and battery electric vehicles—addressing range anxiety while supporting performance demands, including towing and long-distance travel. 2
PRODUCT NEWS
Polypropylene
PGP was flat in May. CDI and CMA both reported out flat as well.3, 4
CDI is estimating that PGP will be up $0.03/lb. in June and up $0.02/lb. in July.3
ACC and CDI report operating rates at 75% and DOH at 38.9 days in April. Operating rates decreased by 1.6% and DOH decreased by 3.3 days from March.3, 4
Export6: Sellers are optimistic for stronger demand in June as summer and hurricane season begin.
April exports (excluding Mexico and Canada) reached 95M lbs., the highest monthly total in calendar year 2025.
Depressed pricing in April and May supported strength of exports.
Mexico6: The market remained stable through May and early June, supported by firm PGP pricing.
DAP Laredo pricing for PP homopolymer held steady at $0.46/lb. for six consecutive weeks.
Supply conditions: Homopolymer is healthy; copolymers remain tight.
Imports from the U.S. and Canada continue at a steady pace.
Stable prices are expected to prompt customer inventory restocking in June.
PE settled flat in May. CDI and CMA both reported flat as well.3, 4
CDI is estimating PE to be flat in June and flat in July.3
Some suppliers have issued price increase letters for June at $0.05/lb.
ACC and CDI report operating rates at 86.3% (varies by segment) and DOH at 55.4 for all of PE in April. Operating rates for all PE decreased by 9.6% and DOH increased by 2.1 days (all PE) from March.3, 5
Export6: June offers include price increases ranging from $0.01/lb. to $0.03/lb.
Despite soft demand, LATAM export volumes remain close to 2024 averages.
Global freight rates increased sharply on June 1, pushing up shipping costs from Asia.
LATAM buyers are now facing higher CFR resin prices from Asian sources.
U.S. PE exports in April hit 2.57B lbs., an unexpected high given ongoing tariff uncertainty. However, exports to China dropped to a 34-month low, while Europe saw volumes exceed the 2024 average.
Mexico6: Demand is low but holding steady vs. May, with some pre-buying ahead of expected price increases.
Supply conditions: LDPE and LLDPE remain widely available, but HDPE HMW has tightened. Braskem Idesa’s planned June shutdown may further constrain HDPE supply.
Border congestion and customs inspections continue to disrupt HDPE BM supply flows.
DAP Laredo Pricing: LDPE GP remains steady at $0.44/lb., while HDPE BM, HDPE HMW, and LLDPE each increased by $0.01/lb.
ABS6
May ABS contract prices hold steady, as wait-and-see sentiment continues.
Demand is steady to improved; feedback is mixed among market sources.
ABS contract prices finalized flat for April.
Freight rates remain on the lower end, with a short-term increase likely with the finalization of new trade deals.
The cost gap between domestic ABS and Asian imports decreases slightly.
U.S. ABS imports hover around 35%, an increase from the typical 30%.
Inventory build continues for ABS in the U.S.
SABIC announces potential sale of its European assets.
Polycarbonate6
PC contract prices for May rolled over from April.
PC domestic demand and exports for Q1 2025 were weak.
The global PC market remains oversupplied.
Price increase announced by one domestic manufacturer.
U.S. PC exports were predominantly to Mexico and Canada.
Tariffs expected to have a minimal impact on U.S. PC market.
Polystyrene6
Demand remains soft, as PS continues to have a weaker-than-expected spring.
PS contract prices for May are expected to be slightly lower than April.
Feedstocks see mixed movement, as June benzene contract prices settle higher.
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