IHS Markit: PE demand continues to be strong and operating rate remains healthy

Recently, the 2021 Global Plastics Summit/Polyethylene-Polypropylene Industry Chain Global Technology and Business Forum (GPS/PEPP) was held

In the past two years, multiple factors have created a bullish trend for PE, the most important of which is the spread of the new crown pneumonia epidemic, which has promoted the growth of demand for packaging, health and hygiene applications, while slowing the implementation of sustainability measures

IHS Markit predicts that the total global PE demand will reach 115 million tons this year, an increase of 5% over 2020.

In the process of the surge in PE demand, two major hurricanes and a historic winter storm occurred along the Gulf Coast of the United States, leading to massive supply disruptions, and rising energy prices pushed up global raw material costs, coupled with soaring transportation costs

Delayed commissioning of new capacity to ease the impact

Nevertheless, the new crown pneumonia epidemic has also disrupted market forecasts by pushing up demand and delaying the commissioning of a large number of new capacity

Vafiadis pointed out: “Last year, the total PE production capacity in the United States was about 22 million tons per year.

In fact, North American PE production capacity is also increasing

　　PE operating rate will remain healthy

　　Vafiadis said: “Based on this, after we updated the global new capacity and new demand forecast, we found that the overcapacity of the nameplate between 2020 and 2023 is only about 6 million tons per year

　　IHS Markit predicts that the global PE operating rate will bottom out to 84% between 2022 and 2023, and then rebound

　　Wafiadis pointed out that if measured according to the actual capacity available for operation, the PE operating rate will be higher