Polyethylene Market Intelligence

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Subscription Benefits:

  • PRO access to New Beroe LiVE*
  • Unlimited updates on the Report*
  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)

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*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

Report Coverage

  • Global Capacity–Demand Analysis
  • Global Trade Dynamics
  • Regional Market Snapshot-North America, Europe, Asia
  • Cost Structure Analysis

Production Size

Production Size North America

25.0 MMT

Production Size Europe

18.2 MMT

Production Size Asia Pacific (APAC)

44.6 MMT

Table of contents

  1. Polyethylene Executive Summary
  2. Global Market Outlook
  3. Supply Market Outlook
  4. Demand Market Outlook
  5. Industry Best Practice
  1. Polyethylene Market Analysis
  2. Global Market Size: PE
  3. Global Capacity - Demand Analysis
  4. Global Demand by Application
  5. Global Market Outlook
  6. Global Trade Dynamics
  7. Global Imports
  8. Global Exports
  9. Regional Market Outlook (North America, Europe and Asia, LATAM, and MEA)
  10. Supply - Demand Trends and Outlook
  11. Trade Dynamics
  1. Polyethylene Industry Analysis
  2. Industry Outlook (North America, Europe and Asia, LATAM, and MEA)
  3. Drivers and Constraints for the Industry
  4. Mergers and Acquisitions
  5. Innovations
  6. Porter’s Five Forces Analysis
  1. Polyethylene Cost and Pricing Analysis
  2. Cost and Price Analysis (US, Europe, Asia, LATAM, and MEA)
  3. Cost Structure Analysis
  4. Price Analysis: PE (North America, Europe, Asia, LATAM, and MEA)
  1. Polyethylene Supplier Analysis
  2. Global Capacity Share by Suppliers
  3. Global Capacity Addition by Suppliers
  4. Regional Capacity Share
  5. Exhaustive Supplier List
  6. Key Global Supplier Profiles - SWOT Analysis for Global Suppliers
  7. Financial Risk for Top Five Global Suppliers (if publicly listed)
  1. Polyethylene Industry Best Practices
  2. Contract Structures
  3. Industry Best Practices

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Global Market Outlook on Polyethylene

  • The global demand is expected to grow at 3.2 percent CAGR through 2017–2022.
  • Asia will remain the key demand driver with an expected growth of 4.4 percent due to the increase in per capita consumption.
  • Blow molding applications and food/non-food packaging applications will be the key segments that will drive the growth across the regions.
  • The major share of the global polyethylene market is from North America: 20 percent, EU: 16 percent, Asia: 39 percent, MEA: 20 percent, and LATAM: 5 percent.  
  • The top polyethylene suppliers are SABIC, ExxonMobil Chemical, Dow Chemical, Sinopec, and Petrochina.
  • The global polyethylene demand will grow at 3.2 percent, driven by demand from APAC.
  • Polyethylene market outlook shows that films used for packaging (food and non-food) and non-packaging account for over half of the world’s PE demand.
  • polyethylene%C2%A0-market-size

Demand Market Outlook

  • The global PE demand is expected to grow at a 3.2 percent CAGR through 2017–2022.
  • The Middle East and North America are known to be the supply surplus regions, while Asia, LATAM, and Europe are known as trade deficit regions. The trend is broadly expected to continue until 2022.

Global Market Size: PE

  • The global PE market was valued at $152 billion in 2016 and is estimated to touch $190 billion by 2022, growing at a CAGR of 3.8 percent.
  • Asia will likely witness a high growth rate of about 4.4 percent CAGR, followed by the Middle East, ranging from 4 to 5 percent CAGR, while saturated markets, like the US and Europe, are expected to witness a growth of about 2–3 percent CAGR during 2017–2022.
  • Europe will grow at 1.2 percent during the forecast period while LATAM will see a growth rate of about 2.3 percent.

Global Capacity–Demand Analysis

  • The increase in new capacities to the tune of 33-34 MMT by 2021 and modest demand growth rates of 3.2 percent CAGR are likely to keep the market well supplied.
  • An increase in new capacities by over 6 MMT in China, the largest demand center, could reduce the supply-demand gap. Thereby, leaving CPG buyers with more domestic sourcing options. However, Asia would continue to be a net importer of PE.
  • Likewise, an increase in new capacities in the US could lead to increased exports into LATAM, China, and African countries.

Market Outlook 

  • Capacity Dynamics: The global PE production capacity is expected to increase by 33–34 MMT to touch 133 MMT by 2022, driven by the capacity additions in the US, Asia, and the Middle East.
  • Production: The operating rates were expected to drop during 2016–2018 due to the increase in new capacities and marginally improve in the subsequent years.
  • Demand: The global PE demand is estimated to grow at 3.2 percent, driven by blow molding and film applications in the packaging segment.

Engagement Outlook 

  • The North American market is predominantly contract-based, and buyers prefer to source locally, due to the higher cost of imported PE.
  • Contracts are generally renewed annually.
  • In Asia, buyers engage in spot buying and source both within the region or from Europe/Asia, if arbitrage opportunities are available.
  • In Europe, the buyers’ source both within the region and from Asia/Middle East. Both spot and contract prices are used.
  • The suppliers are willing to enter into a contract, only if the minimum order volume is over 1,000 MT or sometimes over 2,000 MT.

Market Overview

  • An abundance of low-cost ethane in the US has been driving PE capacity expansions in the US and Canada, where over 10 MMT new capacity would be online by 2021.
  • Lifting of sanctions on Iran will drive new PE capacity additions in Iran.
  • Due to stringent environmental regulations in China, the country has scrapped "coal to olefins plants" and has started investing in imported ethane-based crackers.
  • Europe’s recycling targets: The European Union has set its targets for recycling to over 40 percent by 2025, which is expected to curb the demand for virgin PE in the market.
  • Price movements of ethylene have a considerable impact on the resin production cost and margins.
  • Price analysis forecasts that the American polyethylene market price was expected to decrease by 0–1 percent in Q3 2019 on a Q-o-Q basis. 
  • The prices were expected to decrease by 1–2 percent on a Q-o-Q basis in Europe.

Why You Should Buy This Report

  • Regional market analysis, supply-trend analysis, industry drivers and constraints, cost structure, and pricing analysis of the polyethylene market.
  • Provides supplier profile and SWOT analysis of major polyethylene suppliers like Exxon Mobil, SABIC, etc. 
  • It lists out the best industry practices and pricing structures.

Polyethylene Frequently Asked Questions

  1. What makes Asia the key demand driver for the polyethylene market and what is its expected growth rate?
  2. Asia is known to be the key demand driver for the polyethylene market as it fairly contributes to the increase in per capita consumption and shows an expected growth rate of 4.4 percent.
  1. Which regions capture the major shares of the global polyethylene market and what’s their market share?
  2. As per the polyethylene market outlook report, the major share of the global polyethylene market is from the North American region capturing 20 percent of the share. It is followed by the EU with 16 percent, Asia with 39 percent, MEA with 20 percent, and LATAM region with just 5 percent share.
  1. What’s the average production size of North America, Europe, and the APAC region for the polyethylene market?
  2. Amongst North America, Europe, and the APAC region, the highest production of polyethylene comes from Europe with 44.6 MMT size. Europe is followed by North America with a production size of 25.0 MMT and then by the APAC region with a production of 18.2 MMT.
  1. Who are the top suppliers of the polyethylene market?
  2. As per Beroe’s report, the top suppliers of the polyethylene market are:
    -SABIC
    -Exxon Mobil
    -Dow Chemical
    -SINOPEC
    -Petrochina
  1. What’s the average length of contract that’s acceptable within the polyethylene market as an industry standard?
  2. The average acceptable length of contract in the polyethylene market is one year.
  1. Had there been any major pricing shift within the polyethylene market across regions between Q2 of one year and Q3 of the next year?
  2. According to the data report generated by Beroe, the price outlook for the polyethylene market took a considerable shift across regions when Q2 of one year and Q3 of next year were compared. The insights are as follows:
    -NA: 0.0 percent
    -EU: 5.7 percent
    -Asia: 4.3 percent
    -MEA: 2.0 percent
    -LATAM: 4.9 percent
  1. What’s the primary challenge/opportunity being faced by the suppliers in the polyethylene market?
  2. As per Beroe’s analysis, capacity addition in China, Iran, India, and Mexico to decrease the PE exports from the US region is the biggest challenge/opportunity that is being faced by the suppliers in the polyethylene market.
  1. Where does the global capacity, global demand, and global demand CAGR stand for the polyethylene market?
  2. As per the polyethylene market analysis report shared by Beroe, the global capacity, global demand, and global demand CAGR of the polyethylene market stands at a valuation of 98.70 MMT, 87.23 MMT, and 3.53 percent respectively.
  1. What kinds of engagement are acceptable as industry standards within the polyethylene market across regions?
  2. There are two forms of engagement widely accepted as industry standards within the polyethylene industry. The engagement forms are:
    -Contract
    -Spot
    These two engagement forms are bifurcated within regions as:
    -North America region: Contract
    -Asia: Spot
    -Europe: Contract and Spot

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