ICIS price assessments for polyethylene (PE) are widely used by market players globally in contracts and trade deals. Our reports provide you spot and contract prices for key PE grades, as well as feedstock prices and trends drawn from our global network of trusted sources.
ICIS offers short-to-long term solutions – from historical and forecast pricing data, news and market analysis, to supply and demand forecasts, ensuring you can evaluate the markets from every angle.
Updated to Q1 2021
Asia
China PE production volumes increased but import supply tightened. The US winter storm caused massive production outages and tightened US supply further in China. SE Asia supply was also generally tight because of delayed shipments due to container shortages and the absence of US cargoes while Middle East supply also tightened due to better netbacks to other regions.
China domestic demand slowed leading up to the Lunar New Year holidays but then recovered after the holidays as most downstream production increased, led by demand for packaging. SE Asia demand showed marginal improvement as COVID-19 vaccination efforts gained momentum but a lack of regional travel was still a drag on economic activities.
Europe
Supply was extremely tight in Q1, with some grades short. Low prices in global terms at the end of 2020 led to complacency, and by the time buyers came back to the market supply had tightened, on increased exports, fewer imports and reduced output. Supply of LDPE was particularly impacted, but all grades became tight as other regions provided better netbacks. Arbitrage opportunities were appearing by the end of Q1.
Demand was strong in Q1, following unexpectedly good demand at the end of 2020. Tight supply spurred some buyers to request more volumes than they needed, as they expected to procure only a portion of their request, and this led to some confusion over the true level of Q1 demand. Packaging remained robust, along with construction. Lockdowns throughout Europe were widely thought to have supported packaging demand.
Turkey
Availability started poor and became weaker through the first quarter of 2021. Reduced allocations remained an issue throughout, as suppliers targeted better arbitrage opportunities. The sudden closure of large portions of US production, due to the snow storm in Texas, exacerbated the situation. This left normally predictable events, such as Nowruz, as further strains on volume availability.
There were many buyers confident of a price softening in February, meaning they avoided January purchases, which left them short when prices stayed firm. Demand has stayed strong, although high prices have left some converters reducing their output because of the historically high prices. Towards the end of the quarter, resistance began to grow to the record highs, with the Turkish Plastics Industry Federation calling for a joint boycott, with Chinese buyers.
Latin America
Latin America PE supply was tight in most countries during Q1 amid lower production levels in Mexico and limited output in Brazil due to maintenance at several plants. Plant outages and force majeures in the US following the polar storm have reduced availability for imports to the region. Brazil’s PE exports are much lower than normal, but imports have increased.
Q1 demand for PE continued showing strength amid increased consumption of essential goods raising demand for packaging applications. Industrial activity in Brazil and Argentina are showing signs of easing and will have a greater impact on demand for injection grades. Most countries are facing elevated demand, but PE consumption in Mexico was 3-7% lower year on year in 2020, depending on the grade.
Middle East
Supply tightened substantially from Q4 2020, as a spate of production disruptions in the US emerged following the winter storm that hit the US Gulf Coast. This created a supply gap within the US and in Latin America. Availability within the Middle East tightened as a result, as suppliers diverted bulk allocations to these regions in view of higher netbacks. Some unplanned and planned outages within the region further limited Middle Eastern supply.
Early Q1 demand held steady as buyers looked to stock up at the start of 2021. Trades took a hit following curtailed allocations to the region, as regional sellers exported bulk volumes to deep-sea destinations on higher netbacks. Demand and transaction volumes were further hit by the successive price hikes through Q1. Buyers purchased on need-to basis, as it became increasingly difficult for processors to pass the resin price hike on to downstream markets.
Africa
Availability remained tight in Q1. Many buyers had hoped that the Lunar New Year holidays would improve sellers’ interest in Africa, as demand in Asia fell away. Logistics issues also abounded. The severe storms in February in the US exacerbated supply issues.
Buyers were reluctant to purchase in the run-up to Lunar New Year, with many expecting prices to soften immediately after. As prices remained firm, buying interest grew. The US snow storms then drove a panicked response from some buyers, who relied on US volumes. Demand at the end of the quarter was strong, driven almost entirely by limited availability. Some buyers relied on stocks and limited purchases to avoid higher prices.
US
Supplies tightened significantly in Q1 as the mid-February polar storm caused the bulk of US crackers and PE plants to face at least temporary shutdowns. Ongoing strength in demand combined with the loss in production caused a significant draw down in PE inventories. Plants gradually recovered from late February through March, although average operating rates remained below pre-storm norms by the end of Q1.
Demand remained healthy. Domestic demand found ongoing support from pandemic-induced shifts in consumer behaviour included increased at-home dining and the rising prevalence of online shopping. Overseas demand for US PE also remained strong despite the steady escalation in prices, with spot demand remaining solid in Latin America and Europe while the arbitrage window to Asia remained shut throughout much of Q1.
ICIS publishes pricing reports for key polyethylene grades and offers timely and in-depth market data, including price assessments, trade activity, feedstock supply and analysis of each region’s current and upcoming export availability.
Subscription to the ICIS polyethylene pricing reports includes complimentary access to our petrochemical analytics platform providing you with a 360-degree view of the market.
Key trading prices and activities – Import, export, domestic prices. Offers, bids, transactions
Price alerts and market updates: Shifts in prices, latest news on the PE market developments and changes to regulations and demand trends
Plant data: Production and capacity, plant maintenance and shutdowns
Feedstock: Prices and market updates for feedstocks – crude, ethane and ethylene
Historical prices: Download and/or chart pricing from as far back as the start of ICIS coverage
Weekly market outlook: Overview and outlook for the overall PE market, including a brief commentary on the other regional markets
Supply and demand: Analysis of domestic and international supply and demand
Regional coverage: Africa, Asia-Pacific, China, CIS, Europe, Latin America, Middle East/South Asia, Turkey, US
Africa:
Asia-Pacific:
China:
CIS:
Europe:
Latin America:
Middle East/South Asia:
Turkey:
US:
The ICIS pricing intelligence service comes with analytics tools that take away the hassle of developing your own analysis. Quickly access data such as:
Plan your market position with ICIS 12-month rolling price forecast. Understand where the market is heading to shape your short-term pricing and negotiation strategies.
Our concise monthly reports include details of prices, margins, capacity, supply and demand for the next 12 months. The reports are quick to read and support fast decision-making.
ICIS brings you breaking chemical news as it happens – including market moves, analysis, data and more. The service is reliable, authoritative and always available when you need it most.
Stay on top of polyethylene and other related commodities such as its feedstocks across all regions with ICIS news.
Gain a long-term view of the market with ICIS Supply and Demand data (1978-2040), which offers end-to-end perspectives of the polyethylene supply chain – HDPE, LDPE, LLDPE, ethylene and crude.
Gain quick access to data on import and export volumes, plant capacities, production, product trade flows, companies and route. With historical data from 1978 and forecast available up to 2040, this powerful data and analytics service from ICIS helps senior management, strategists, business planners, analysts and risk managers to:
Working closely with you to understand your strategies, challenges and ambitions, the ICIS consulting team delivers tailored advice and solutions to suit your unique requirements. With many years’ experience of guiding business leadership teams, we show you how market conditions can make a positive or negative impact on your long-term plans.
Training: ICIS polymer training provides market players an overview of the plastics market value chain, including polyethylene. Our team of industry experts can help you increase your knowledge of the industry and gain the insight and know-how needed to operate and trade effectively.
View our polymer training courses »
Conferences: ICIS hosts regional Polyolefins conferences, bringing key industry experts to deliver a programme that addresses current industry issues.
Our Pricing Methodology: ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters worldwide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our benchmark prices have been trusted by buyers and sellers around the globe for nearly 40 years.
Choose ICIS for concise information and easy-to-assess formatting, all delivered straight to your inbox.
MOSCOW (MRC)--Polyethylene (PE) imports into Ukraine stood at 103,300 tonnes in January-May, down 8% year on year, according to MRC’s DataScope report. Imports of high density polyethylene (HDPE)...
ReadLONDON (ICIS)--Prezero Netherlands is seeking external sorting companies to sort its plastic waste following a fire at its Zwolle post-consumer waste sorting centre in the Netherlands on Wednesday 16...
ReadSINGAPORE (ICIS)--Here are the top stories from ICIS News Asia and the Middle East for the week ended 18 June 2021. Singapore trade recovery to continue after May NODX growth Singapore's...
ReadIn this week's podcast, it centers on the chemical industry that faces an uphill battle to transform itself quickly enough for a low carbon future. It is a battle it must win. In another podcast, the...
ReadThis FREE ICIS Polyolefins Virtual is an extensive and vibrant digital event for the polyolefins community, bringing together key players from around the world to discuss and address the current challenges. This highly targeted digital forum offers you AI-powered contact-matched networking, instant new business connections, and access to industry leaders and thought leadership commentary to help navigate through these unprecedented times.
