Tariffs and export restrictions continue to pressure global supply chains, with antimony bans impacting electrical and electronics (“E&E”) applications and rising costs creating concern in the healthcare market. In resins, PP pricing declined, PE held flat, and exports surged ahead of anticipated tariffs. Read on for key updates by material and region.
MARKET SPOTLIGHT
E&E
China’s export restrictions on critical materials continue to disrupt supply chains, with recent bans affecting antimony—used in flame retardants and industrial magnets for plastics processing. U.S. production is expected to ramp up in 2025, offering some relief. 1
While construction markets and housing starts are down slightly in the first quarter of 2025 due to increased costs and economic uncertainty, the home renovation market is still seeing growth in projects and related products. 2, 3
Electrical demand for data centers continues to make massive gains. In the last decade, power consumption has tripled and is again expected to triple in the next three years. 4
Healthcare
Tariffs raise concerns for healthcare supply chains, with potential cost increases on critical materials like syringes, diagnostic tools, X-ray machines, and PPE. 5
Medical device makers and provider groups warn of downstream effects, as companies such as Dexcom, Insulet, and Tandem report early impacts that could disrupt patient care. 5
PRODUCT NEWS
Polypropylene
PGP was down $0.06/lb. in April. CDI and CMA both reported out down $0.06/lb. as well.6, 7
CDI is estimating that PGP will be down $0.01/lb. in May and up $0.05/lb. in June.6
ACC and CDI report operating rates at 76.6% and DOH at 42.2 days in March. Operating rates increased by 1.8% and DOH increased by 4.1 days from February. 6, 8
Export6: Export volumes remain limited overall.
Pricing continues to constrain activity, particularly for LATAM shipments.
Producers stress the need for margin recovery to sustain exports, with hopes that seasonal demand in Q2 will help support improved pricing.
Mexico6: DAP Laredo homopolymer PP prices held steady at an average of $0.46/lb.
Market sentiment remains cautious, though restocking activity is expected to increase later in the month.
Import logistics are stable for now, but higher volumes could introduce delays.
Local producer Indelpro continues to operate at healthy, steady rates with competitive pricing.
Polyethylene
Some suppliers have settled flat, and at least one has settled down $0.03/lb. CDI and CMA both reported down $0.03/lb.6, 7
CDI is estimating PE to be flat in May and flat in June.6
Several suppliers have issued price increase letters for May at $0.05/lb.
ACC and CDI report operating rates at 95.9% (varies by segment) and DOH at 53.3 for all of PE in March. Operating rates for all PE increased by 2.3% and DOH decreased by 1.3 days (all PE) from February.6, 8
Export6: HDPE Blow Molding export prices from North America fell an average of $0.01/lb., with some traders reporting even lower deals.
U.S. PE exports reached a record 3.16 billion pounds in March, per updated U.S. Census data. This surge was driven by efforts to ship ahead of proposed tariff implementation.
Exports to Europe rose 36% month-over-month to 595 million pounds, while shipments to China dropped 25.5% from February to March, falling to 369 million pounds.
Outlook for PE exports to China and Europe remains uncertain.
LATAM buyers remain cautious, as further price reductions are anticipated.
Mexico6: DAP Laredo prices declined $0.01/lb. across all PE grades this week.
Market activity mirrored April trends, with buyers focusing on essential volumes while awaiting potentially lower pricing in the latter half of May.
Braskem Idesa inaugurated a new chemical terminal in Coatzacoalcos with capacity for 80,000 barrels/day of ethane, allowing its ethylene unit to run at full capacity for the first time.
Resin supply is currently stable from both domestic and international sources.
ABS6
Demand showed mixed activity through late March and into April.
Upcoming tariffs are set to impact ABS imports from countries such as Taiwan and South Korea.
Some relief noted as USMCA protections remain in place for compliant materials.
ABS contract prices for March finalized flat.
April contract prices are expected to rollover from March
Freight rates continued to decline through April.
The cost gap between domestic ABS and Asian imports narrowed, as tariffs drive up import pricing.
Polycarbonate6
PC contract prices for April rolled over from March.
Demand shows signs of improvement.
The U.S. PC market remains oversupplied.
Exports continue to flow primarily to Mexico and Canada.
Tariff changes are currently expected to have minimal impact on the U.S. PC market.
Polystyrene6
April contract prices finalized lower than March.
Supply remains long amid continued weak demand.
Benzene contract prices for May settled slightly down from April.
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