Rebound in Asian export demand for US polyethylene

05-Nov-09

Recovering demand from Asia for US polyethylene (PE) has helped exports rebound after a temporary September slowdown as per ICIS. The export demand is expected to remain strong through at least November. PE demand in Asia, particularly in China has been largely robust throughout the year. Demand seems to have dampened as crude oil dropped, but perked up when crude rebounded toward US$80/bbl. Since levels of inventories are low globally, cost movements such as crude oil’s increase are likely to draw increased market reaction. Conventionally, polymer demand declines in late December as companies shut down for holidays, but since inventories across the board are low, market outlook and trend seems uncertain.