As the first quarter of 2026 progresses, global plastics markets continue to see stable demand while balancing emerging geopolitical and regulatory pressures. Healthcare innovation and packaging policy developments are shaping material requirements across key end markets, while evolving sustainability frameworks and regulatory initiatives are influencing supply chain strategies and product design.
At the same time, geopolitical developments and feedstock dynamics are introducing new variables into global petrochemical trade flows. Supply discipline, operating rates, and export activity continue to influence resin pricing across major polymer families including polypropylene, polyethylene, polystyrene, polycarbonate, and ABS.
MARKET SPOTLIGHT
Healthcare
Advanced medical devices for home use are on the rise. The healthcare industry is witnessing a massive shift from hospital-based care to personalized at-home solutions. The COVID-19 experience pushed telehealth and remote monitoring to the mainstream. Breakthroughs in AI and wearable technology have expanded these capabilities to include therapeutic devices as well as assistive technologies.1
PFAS regulations are expected to impact medical device manufacturers. There are increasing restrictions on the use of PFAS worldwide with the European Chemicals Agency expected to deliver results of their latest study at the end of 2026. These regulatory developments could lead to supply chain disruptions as producers of these chemicals stop production.2
Packaging
Packaging Policy Acceleration in 2026: Packaging regulation is accelerating across the U.S., with states such as New York, Massachusetts, and New Jersey advancing legislation focused on extended producer responsibility (EPR), recycled-content mandates, and stricter recyclability labeling rules. At the same time, implementation of existing programs in states like California and Colorado is increasing reporting and compliance requirements, creating a complex patchwork of regulations that requires companies to closely monitor policy developments and engage early to ensure practical alignment with real-world packaging operationse.3
Advancing Circularity for Flexible Plastic Packaging: Flexible packaging provides significant efficiency benefits—including lightweighting, reduced transportation emissions, and strong product protection—but remains difficult to recycle due to multi-material structures and limited collection infrastructure. Improving circularity will depend on stronger demand for post-consumer recycled (PCR) content, packaging redesign toward mono-material films, expanded collection and recycling systems, and continued commitments from brand owners to incorporate higher levels of recycled content in their packaging.4
PRODUCT NEWS
Polypropylene
PGP was up $0.04/lb. in February. CDI and CMA both reported out up $0.04/lb. as well.5, 6
Initial CDI estimate for PP is flat in March and down $0.005/lb. in April.5
ACC and CDI report operating rates at 78.1% and DOH at 37.1 days in January. Operating rates increased by 7.6% and DOH increased by 0.3 days from December.5, 7
Some Suppliers have issued price increase letters of $0.04/lb. effective April 1.
Export: The impact of the situation in the Middle East has been felt immediately, as regions that do not have production restrictions are being called on to try and fill the gap left by the Middle East, and, as a result, prices are surging.8
Mexico: February marked the second consecutive month of price increases in the PP market after a long 10-month streak of declining or stable prices. The regional spot polymer-grade propylene (PGP) trend continued the upward move that began at the start of January, and PP prices promptly responded to the changes. The supply of PP resins in the Mexican market remained abundant in February, with both imports and local production supplying at normal volumes. Mexican market participants continue to see robust volumes of U.S. and Canadian imports entering the country, while local producers continue to perform at their regular operating rates.8
Polyethylene
PE settled flat in February. CDI and CMA both reported out flat as well.5, 6
Initial CDI estimate for PE is to be flat in March and flat in April.5
Some suppliers have issued price increase letters ranging between $0.05/lb. and $0.10/lb. for March.
ACC and CDI reported operating rates at 93.9% (varies by segment) and DOH at 49.9 for all of PE in January. Operating rates for all PE increased by 1.1% and DOH increased by 8.5 days (all PE) from Decemberr.5, 7
Export: The pricing scenario suddenly changed in early March with the ignition of hostilities between the United States-Israel coalition and Iran. Hostilities are said to be limiting PE exports from the Middle East region, which will cause a rearrangement of the global supply chain and favor NAM PE exports, at competitive prices, as long as the conflict continues. Market participants who buy from NAM PE producers have reported that quotes for spot and export volumes are up in the range of $0.05/lb. to $0.07/lb.8
Mexico: PE prices in the Mexican market increased for a second consecutive month in February 2026, in line with the monthly trend and the price policy of NAM PE producers. Participants in the Mexican PE market reported a rebound in demand from the second half of January to mid-February, as buyers prioritized supply over the price increases affecting the market.8
ABS5
ABS February contract prices unchanged to January.
Demand reported to be steady to improved.
Upstream, styrene and butadiene face tightness.
East Asia to U.S. West Coast freight rates see decreases further into the month.
Polycarbonate5
PC February contract prices roll over.
PC domestic production is 7.7% lower YTD to November 2025.
PC market is oversupplied globally.
Polystyrene
Final report on February polystyrene (PS) contract prices puts ICIS up $0.02/lb. and CMA indices up $0.0275/lb.5, 6
Supply tightness on styrene and butadiene is expected to continue in the near term with turnarounds pressuring both markets. Geopolitical tensions are pressuring crude prices that impact downstream pricing.5
The March benzene contract price finalized at $3.13/gal, which is an increase of $0.27/gal versus February.5
March marks the fourth consecutive month of PS increase letters being issued by suppliers.5
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