The Global Polyethylene Market May Not Recover Until 2025

Recently, Stephane Lepage, CEO of Mexico's Braskem Idesa, said that 2024 is a transition period for the global polyethylene (PE) market to bottom out, and a stronger recovery is expected in 2025.

Lepage said: "We are dealing with a complex moment in the global petrochemical industry. New PE production capacity that was delayed during the epidemic came into operation last year and this year. In Asia, especially China, new production capacity has also been put into production. Amid the oversupply of PE, the economy did not recover as strongly as expected. Demand in countries such as China, the United States and Europe did not grow as expected. "

Regarding the movement of the PE market, Lepege said: "The bottom of the global PE price may have been seen in July 2023, as demand has strengthened and conditions have improved since then. We expect 2024 to be better than 2023, but will still be in a transition cycle through the second half of 2024. 2025 will be a better year for the industry."

Regarding the Mexican market and Braskem Idesa, Lepage said: "The Mexican PE market is facing more competition from imports from the United States. On the bright side, we have a good customer base and have built many important relationships by developing products, processes and services. We continue to believe that we are a stronger player in the country and in the region." Braskem Idesa typically sells around 60% of its production in the local Mexican market, with the remaining 40% exported.