Overview
Plastic resin costs extended their upward trend in March, as both polyethylene and polypropylene recorded another $0.10 per pound month-to-month increase, according to a report from Baird. The firm highlights continued inflationary dynamics in resin markets and notes producer positioning that could sustain further price rises.
Price details
On a product basis, the average price for polyethylene was $0.67 per pound in March, representing a $0.15 per pound increase year-to-date, or approximately 29%. Individual PE grade pricing was reported at $0.66 per pound for HDPE, $0.72 per pound for LDPE, and $0.64 per pound for LLDPE.
Polypropylene prices climbed to $0.62 per pound in March, reflecting a 34% increase year-to-date. Baird also noted that the underlying monomer for PP, propylene, rose by $0.10 per pound on a sequential basis.
Supply and feedstock considerations
The report attributes part of the global feedstock cost increase outside the United States to conflict in the Middle East, which has effectively taken the region out of the polyethylene export market. Prior to this disruption, the Middle East had been one of two net exporters of PE worldwide, the other being the United States.
Contractual price actions and short-term outlook
Major resin producers have announced further contractual price increases for upcoming months. For polyethylene, increases of roughly $0.20 per pound are pending for both April and May. Separately, ICIS is forecasting a $0.16 per pound rise for polypropylene in April.
Baird cautioned that near- and medium-term market dynamics are likely to remain inflationary, with producers positioned to press through increases on a go-forward basis. The firm expects that the current inflation cycle will create pressure points in the second and third quarters, with margin recovery anticipated in the second half of 2026.
Key takeaways
- PE average price: $0.67 per pound in March; up $0.15 YTD (about 29%).
- PP price: $0.62 per pound in March; up 34% year-to-date; propylene rose $0.10 sequentially.
- Contractual increases pending - approximately $0.20 per pound for PE in April and May; ICIS forecasts $0.16 per pound for PP in April.