Polyethylene Resin Pricing & Demand Outlook
While resin production started rebounding, challenges piled up. Converters are being hit with a one-two punch of historically high and unstable pricing.
Despite pricing challenges, plastics demand continues growing. The Plastics Industry Association (PLASTICS) forecasts manufacturing to increase by 5% in 2021, with plastics machinery and production molds growing by 12.6% and 4.6%, respectively, during the year. And the production of plastic materials and resins is expected to jump 8.2% in 2022.5
According to PLASTICS, higher resin prices amid ongoing scarcity and strong demand were expected to last into 2022, with slowing price hike rates as the only relief. Year-to-year increases peaking at almost 26% in 2021 are expected to fall to around 2.5% in early 2022.6