Global demand growth is sluggish, new PE in the United States is hard to find buyers.

- Mar 06, 2019-

According to the latest news, the global PE market is beginning to show the first signs of price war, as new production capacity of PE in the United States is being put into production at a time of sluggish global demand growth and trade war between China and the United States.This is especially true for linear low density polyethylene (LLDPE).Since mid-2018, U.S. LLDPE prices have decoupled and fallen from Europe and Asia as U.S. LLDPE producers try to gain market share for their new capacity.

A trade war between the us and China has made China, the largest importer of PE, less attractive to us exporters.U.S. PE exporters have begun to shift from China to other markets as exports have been stymied.However, other Asian markets are much smaller than the Chinese market and cannot absorb more of the PE exported by the United States. Even with Europe, it is difficult to fully absorb the new U.S. capacity.