The global polyethylene market is expected to be oversupply next year

According to a report by Petrochemical News in Houston on December 4, 2020, the global polyethylene market is expected to face an oversupply situation in 2021. As seen in early 2020, this may depress prices. The hurricane hit the U.S. Gulf Coast in 2020, causing polyethylene production to shrink, leading to a surge in polyethylene prices.

In addition to returning to normal conditions after US hurricanes hit southwestern Louisiana and southeastern Texas in August and October, new polyethylene production capacity in Asia is also ready to start.

Although the demand for polyethylene remained resilient to a large extent during the global coronavirus pandemic, due to the rapid increase in the number of new crown pneumonia infections and continued unemployment in various regions, the overall demand was weak compared to the level before the coronavirus outbreak. It is expected to continue.

Rob Steele, senior director of the petrochemical industry at Energy Consulting and Analysis, said recently, "With the arrival of 2021, the shutdown of many polyethylene plants on the Gulf Coast caused by Hurricane Laura will end. Due to the return of production capacity. In the market, polyethylene supply will increase, and polyethylene prices will face pressure."