U.S. PE and PP exports from January to April 2021 fell by 12.5% ​​and 12.9% respectively from the same period last year

Data released by the U.
S.
International Trade Commission on June 9 showed U.
S.
polyethylene exports in the first four months of 2021 fell 12.
5% ​​compared with the same period in 2020, reflecting the continued impact of freezing weather in February that forced production to stop for several weeks
.

Data show that from January to April this year, US PE shipments were 1.
846 million tons, down from 2.
11 million tons in the same period last year
.

Production, which was sharply reduced by freeze-related shutdowns, has largely recovered, but the data reflects a lengthy recovery
.
Many polyethylene force majeures declared during the freeze remain in effect as producers scramble to meet strong demand in the U.
S.
and international markets while trying to restock inventories
.

"We continue to see strong demand and constrained inventory levels as the industry manages backlogs of customer orders and the impact of the February freeze," Dow Chief Executive Jim Fitterling said at a June 3 conference.
supply pressure
.
”

April 2020 was the peak of U.
S.
production shutdowns due to the pandemic, with some producers cutting prices or closing factories in response to reduced demand
.
But domestic and international demand for PE is more resilient than the resin used to make more durable plastics
.

Mexico is the largest recipient of U.
S.
PE exports in the first four months of 2021, with 384,570 tonnes or 20.
8% of the total
.
Canada came in second with 204,667 tonnes, or 11% of the total, followed by China with 199,501 tonnes, or 10.
8% of the total, according to ITC data
.

U.
S.
PP exports drop

U.
S.
PP exports also fell, ITC data showed
.
In the first four months of 2021, PP exports reached 516,389 tons, down 12.
9 percent from 593,327 tons in the same period last year
.

Data show that from January to April 2019, the United States exported 553,460 tons of PP, an increase of 7% from 516,389 tons in the same period in 2021, but a decrease of 6.
7% from 593,327 tons from January to April 2020
.

PP demand collapsed during the peak of the pandemic-related shutdown in April 2020, but has started to rebound as the shutdown eased and demand for durable goods such as cars, households and appliances rose
.

Market sources said the situation was exacerbated by the fact that the supply of spot PP export volumes has been essentially zero for several months, and that the freeze-related shutdown in February prompted U.
S.
producers to take a number of force majeure measures that are still largely in effect
.

PP exports are more regional than other U.
S.
-origin resins, with the bulk going to Mexico and Canada for the production of auto parts and other durable plastics
.

ITC data shows that Mexico and Canada imported a combined 425,215 tonnes of U.
S.
PP in the first four months of 2021, accounting for 82% of total U.
S.
exports
.
Malaysia came in third with 14,061 tonnes, or 2.
7% of the total
.