The global polyethylene market continues to be bearish in the second half of the year

According to the ICIS supply and demand database, about 6 million tons of new polyethylene (PE) production capacity will be put into production this year, increasing global PE production capacity by

Affected by factors such as a large number of newly built production capacity, weak global market demand and low raw material costs, market participants generally believe that the global polyethylene (PE) market will remain a bear market in the second half of the ye.

New PE production capacity put into production in large quantities

The global energy and chemical industry market information service provider ICIS (ICIS) supply and demand database shows that this year, about 6 million tons of new PE production capacity will be put into operation worldwide, increasing the global PE production capacity by

The four new PE projects planned to be put into operation in the United States this year will add 84 million tons of production capacity, mainly for the export mark.

However, the new supply of newly put into operation PE capacity to the market is expected to be only half of the designed capacity, mainly because there are various production problems in the initial stage of production, the production capacity is usually released gradually, and the supply of raw material ethylene restricts the full-load production of PE units and other issues, the new supply variable is relatively lar.

Prices of some PE products plummeted

Prices of some grades of PE products have fallen to their lowest levels in 10 years as slowing economic growth affects PE demand and the global PE market is oversupplied due to the massive commissioning of new capaci.

In May, China's industrial growth slowed to 5%, major producers with high inventories took price cuts to reduce inventories, and PE prices fell to a new low since the 2008 financial cris.

The sluggish market sentiment has also hit the Indian linear low density polyethylene (LLDPE) mark.

In Europe, low-density polyethylene (LDPE) prices have fallen to levels close to raw ethylene prices, reducing producers' profit margi.

Oversupply of PE in Latin America and Africa

In the first half of the year, Latin America fell into the predicament of excess PE supp.

African PE prices plummeted, analysts believe, because US PE sellers offered deep discounts when looking for alternative markets outside of Chi.

PE raw material ethylene supply will still be sufficient

The massive start-up of crackers this year has also led to oversupply in the ethylene market in Asia and the United Stat.

        In the second half of the year, ethylene supply will still be sufficie.

        With.

        PE market demand may be weak

        Due to the uncertainty of macroeconomic development, global PE demand will be weak in the second half of the year compared with the same period last ye.

        PE sellers said that the current global oversupply of PE will continue to be absorbed by Chinese dema.

Some market players expect more Southeast Asian goods to be exported to China due to regional capacity expansion and the ASEAN-China Free Trade Agreeme.

Due to lower labor costs, some small plastic recycling companies in China have relocated to Southeast Asian countries such as Cambodia and Myanm.

        The source said that although PE packaging demand will be on an upward trend in the long term, driven by the global e-commerce boom and consumer convenience, and drive PE demand growth, it is slower than previously expect.

        The depreciation of the national currency against the US dollar also suppressed PE imports in some countri.

If Turkey is one of the world's major polymer markets, the weakening of the Turkish lira against the US dollar will continue to hinder Turkey's PE imports, which are bought in US dollars and then sold in the market in the local curren.