Page 44 - Plastics News December 2025
P. 44
INTERNATIONAL NEWS
U.S.-CANADIAN PE AND PP MARKETS LOOK
FOR BETTER DAYS IN 2026
olyethylene and polypropylene markets August, according to ChemPMC. Injection mold-
in the U.S. and Canada are looking to re- ing led the way with a 42 percent market share,
Pcover in 2026 after seeing lower demand twice that of sheet at 21 percent. Sales of PP
through most of 2025. into blow molding were up more than 8 percent,
while sales of the material into film were down 6
“Both [PE and PP] are mature markets where percent.
domestic demand is less relevant,” market ana-
lyst Esteban Sagel said at a recent presentation For U.S./Canadian PE, Sagel said capacity ex-
for the Flexible Packaging Association. pansions “are almost over” and that exports are
driving total demand. “The low cost [feedstocks]
Sagel – principal of Chemical & Polymer Market position allows PE assets to run at high operat-
Consultants in Houston - added that both mate- ing rates of 88 percent,” he added.
rials saw higher inventories in the U.S. and Cana-
da than they did in 2024. Major PE capacity expansions in the last 10-15
years have been fueled by increased access to
Regional PE demand was down 6 percent shale gas and oil in North America.
through August, Sagel said, citing his firm’s data.
Within that mix, low density PE demand was up, U.S./Canadian PP, by comparison, has had lim-
while linear low density PE demand was flat and ited capacity expansions, with stable demand
high density PE demand was down. and limited export growth, Sagel said. As a re-
sult, that market now has relatively low operat-
Film uses accounted for 46 percent of PE sales ing rates of 82 percent.
in the first eight months of 2025, leading the
market and well ahead of blow molding at 16 U.S. PE exports are just under 50 percent of total
percent, according to ChemPMC. Among end production, split between 40 percent for LDPE,
markets for PE, extrusion coating showed the 50 percent for HDPE and 60 percent for LLDPE.
most growth with around 8 percent, while sales
into injection molding showed the largest de- “We appear to be reaching a state of equilibri-
cline, down 15 percent vs. 2024. um, with relative share of domestic [PE] demand
and exports as a percentage of production sta-
PE sales into pipe and conduit also were up bilizing,” Sagel said.
more than 5 percent, according to ChemPMC,
while sales of the material into sheet and blow U.S. PE exports are on track to total just over 34
molding each were down more than 5 percent. billion pounds in 2025. Europe is the largest des-
tination for that material, with 7.5 billion pounds
Regional PP sales were down 3 percent through expected to be sold there this year.
44 PLASTICS NEWS December 2025
