At the 2023 FlexPO+ (now incorporated into the ADI Forum), Thomas Marthinsen, Head of North America Alliance Office, Borealis, and Nathan Wiker, GM & VP Commodities and Packaging, Nexeo Plastics, spoke during the feedstock panel. They discussed understanding exports and sustainability impacts on the feedstocks. The discussion centered on the evolving landscape of the polyolefin market. This evolution was driven by significant shifts in supply, demand, and sustainability initiatives. A key takeaway was the healthy growth anticipated for polyolefin demand through 2025. This growth was particularly in polypropylene (PP) for automotive and EV applications. Additionally, HDPE was expected to grow for infrastructure projects. Conversely, demand for LDPE and LLDPE was expected to see minimal growth. This minimal growth was due to the impact of single-use plastic bans.
The market was also experiencing a surge in ethylene capacity expansion. This expansion was predominantly in China and the Middle East. The surge was utilizing steam cracking technology. Recycled HDPE was projected to significantly cannibalize virgin HDPE demand. This cannibalization was due to its high property retention after recycling. The rise of electric vehicles was a major reason for increased polypropylene demand. Lightweighting became crucial because of the rise. Furthermore, China’s transition from a net importer to a net exporter of polypropylene by 2030 was expected to intensify global competition. This transition would impact traditional exporting regions like Europe.
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