The US polymer market faced another bearish week, with most polyethylene grades drifting lower and PVC export prices collapsing to levels under USD 600/mt. Ample supply, soft global demand, and growing competition from overseas producers have kept sentiment weak, leaving traders and producers struggling to maintain margins.
High-density polyethylene (HDPE) export prices moved lower, weighed down by sluggish demand across key markets. Traders noted that while China continues to absorb a significant portion of US surplus volumes, competition in that market has intensified, with multiple suppliers competing for limited buying interest. In contrast, demand in Latin America, Africa, and Southeast Asia remained subdued, underlining the US market’s reliance on China.
Low-density polyethylene (LDPE) also fell as weak demand persisted throughout August. Sellers were forced to adopt more aggressive pricing strategies, sometimes near breakeven, to move cargoes. Market participants highlighted that abundant availability from domestic producers and weak demand from Asia and Latin America intensified downward pressure on exports.
Linear low-density polyethylene (LLDPE) mirrored these trends, slipping further as producers confronted oversupply and lack of fresh buying interest abroad. Market sources suggested that export prices are now nearing levels where producer margins are being squeezed, raising concerns about sustainability if conditions do not improve.
Polypropylene (PP) prices held steady but activity remained subdued. Ongoing congestion at Gulf Coast ports discouraged international buyers, who are still grappling with extended delivery times. Meanwhile, competitively priced cargoes from Asia continued to cap US exports, further limiting volumes despite unchanged pricing levels.
Polystyrene (PS) exports rolled over, reflecting balanced fundamentals. Ample supply and subdued demand in the upstream styrene market kept prices steady, though trading volumes were minimal. Market sentiment was characterized as inactive, with no major improvement expected in the near term.
The sharpest move came in polyvinyl chloride (PVC), where export prices plunged below USD 600/mt. FAS Houston values fell to USD 560–570/mt, down USD 40/mt week-on-week. The steep decline has raised expectations that US producers may be forced to cut operating rates to prevent further price erosion, although elevated run rates remain in place for now. Buyers were quick to take advantage of the slump, looking to secure October shipments at the newly discounted levels. Feedstock vinyl chloride monomer (VCM) slipped by USD 10/mt to USD 440–450/mt FOB US Gulf, while ethylene dichloride (EDC) held steady at USD 105–115/mt. Upstream ethylene also edged down 1.50 cents/lb to 20.50–21.00 cents/lb.
Polyethylene terephthalate (PET) prices were unchanged, reflecting limited activity and poor demand. Sources described trading conditions as challenging, with buyers showing little appetite for new cargoes given sufficient stock levels and weak consumption in packaging and beverages.
Overall, the US polymer export market is under strain from global oversupply, weak downstream pull, and logistical hurdles. PVC’s sharp decline has highlighted just how vulnerable the sector remains, with buyers exploiting current weakness while producers weigh how to defend margins heading into the final quarter of 2025
