NEW YORK (ICIS)–Global polyethylene (PE) and polypropylene (PP) markets will continue to see headwinds from weak European demand and new capacity through at least H1 2024, but positive signs include strong US PE exports and some improvement in China, executives from LyondellBasell said.
“[US] PE exports have gone up during the past quarter, and that of course is a positive sign. But one also needs to look at additional capacity that has come into the market or that has not really hit the market because of… some technical difficulties,” said Peter Vanacker, CEO of LyondellBasell, on the company’s Q3 earnings call.
He expects the European market overall to remain “highly challenged” on weak demand coupled with rising feedstock and energy costs which will compress margins.
US exports are being supported by a high oil/gas ratio that is expected to continue, especially with volatility around oil markets and gas production being relatively robust, said Ken Lane, executive vice president, Olefins and Polyolefins (O&P) at LyondellBasell.
Published by: www.icis.com
Joseph Chang
27-Oct-2023
