Global supply tightens due to the situation in Iran! American polyethylene producers take the opportunity to increase production. Key raw material ethylene prices surge to a one-year high.

American polyethylene producers are increasing their purchasing efforts for ethylene, a key raw material. This trend indicates that with global supply tightening, American manufacturers are actively seizing export opportunities. Polyethylene is a common plastic widely used in packaging, containers, and other fields. The conflict in Iran has disrupted the global flow of crude oil and petrochemical raw materials, causing the global plastic market to undergo severe volatility. However, the continuous tightening of global supply has also opened up a window for American producers to expand overseas sales. As producers concentrate on stocking up raw materials, ethylene prices along the Gulf Coast of the United States continue to rise. Trader data shows that on Wednesday at the Mont Belvieu trading hub in Texas of Enterprise Products Partners LP, spot ethylene prices were quoted at 30.25 cents per pound. This price continues to rise from around 27 cents on Monday, which itself had already reached a new annual high. The latest trading price has reached the highest level since February 2025, fully demonstrating the continuous strengthening of market demand. Harrison Jacoby, director of ICIS Americas polyethylene business, said, "With export demand continuing to heat up, American polyethylene manufacturers are expected to set a new production record in March." He added that producers' operating rates could increase from the current 90% to 100%. According to ICIS data, North American producers including LyondellBasell (LYB.US) and Dow, Inc. (DOW.US), are seeking to increase the March contract price by around 10 cents per pound. These North American manufacturers account for over 40% of the global net export volume. As the main supply channel for polyethylene and other petrochemical products, the Middle East region's export through the Strait of Hormuz has been disrupted, further exacerbating global supply tensions. Meanwhile, plant maintenance and raw material shortages in Asia are also driving up prices along the entire plastic industry chain. This market situation is boosting demand for American polyethylene. Data shows that the operating rate of ethane cracking units in the US has climbed to around 90%, higher than the approximately 85% before the outbreak of the conflict in Iran. These units are mainly used to produce ethylene, and the increase in their operating rate reflects the dual benefits of improving industry profit margins and strengthening demand.