Published November 2024
The global polyethylene (PE) industry can be characterized mainly by a wave of capacity additions in North America, the Middle East and mainland China (mainly coal-based). The shift toward lighter and cost-advantaged feedstock in North America is incentivizing production in the region. The competition in the international market has increased, adding pressure to high-cost producers, especially in Europe. With the dip in oil prices in late 2014, the cost advantages enjoyed by natural gas-based producers declined but were not totally eliminated. Thus, the increase in North American capacity and production in the coming years will lead to higher exports from the region. Mainland China is expected to benefit from local production; however, its rapid demand growth will still rely on imported low-density polyethylene (LDPE) resins. LDPE’s share of total polyethylene demand has remained notable in 2023, with LDPE and LLDPE together comprising a significant portion of overall demand).
The following chart shows world consumption of LDPE:
Global LDPE demand is forecast to further expand during 2023–28. Mainland China will continue to lead global demand for LDPE. Film and sheet applications continue be the largest end-use segment, accounting for a significant portion of global LDPE demand in 2028. Mainland China is short domestically, and the market for LDPE imports will continue to grow. Therefore, global trade in the next five years will be affected primarily by increased exports from North America and growing self-sufficiency in mainland China. The Middle East will continue to export large volumes during the forecast period.
For more detailed information, see the table of contents, shown below.
S&P Global’s Chemical Economics Handbook – Polyethylene Resins, Low-Density (LDPE) is the comprehensive and trusted guide for anyone seeking information on this industry. This latest report details global and regional information, including
Key benefits
S&P Global’s Chemical Economics Handbook – Polyethylene Resins, Low-Density (LDPE) has been compiled using primary interviews with key suppliers and organizations, and leading representatives from the industry in combination with S&P Global’s unparalleled access to upstream and downstream market intelligence and expert insights into industry dynamics, trade and economics.
This report can help you
- Identify trends and driving forces influencing chemical markets
- Forecast and plan for future demand
- Understand the impact of competing materials
- Identify and evaluate potential customers and competitors
- Evaluate producers
- Track changing prices and trade movements
- Analyze the impact of feedstocks, regulations and other factors on chemical profitability
