Leandro Bassel: The Global PE And PP Markets Are Expected To Recover in The Second Half Of Next Year

On August 4th, senior management at Liedbasel announced that the global polyethylene (PE) and polypropylene (PP) markets are expected to truly recover in the second half of 2024.

Ken Ryan, Executive Vice President of the company's Olefins and Polyolefins business, said on the Q2 financial report conference call, "We still have a large amount of new supply entering the market. At the end of the second quarter, we saw a decrease in prices for products in the Americas region, which will continue into the third quarter. I believe that seasonal factors will lead to weak sales in the fourth quarter, and it will be until the second half of next year before the situation can truly improve.

The EBITDA of the olefins and polyolefins business in the Americas division of Liedbasel in the second quarter increased by 26% compared to the first quarter, reaching $679 million. The company's analysis suggests that the rise in US prices and the decrease in ethane raw material costs have increased PE's profit margin, while the weak demand for durable goods has hit PP's profit margin. The company expects the overall EBITDA of the polyolefin business to decrease by 15% to 20% in the third quarter. Due to weak demand, fluctuations in raw material costs and new production capacity in North America and Asia will compress their profit margins.

Due to the reduction in cracking raw material costs, the European, Asian, and International (EAI) divisions of Liande Bassel's olefins and polyolefins business saw a 9% increase in EBITDA in the second quarter, reaching $84 million. Ryan believes that in the future, the European market will continue to be challenged by consumer uncertainty and energy price fluctuations, while slowing economic activity and insufficient import demand from China will affect global supply and demand balance. Overall, the company's profit margin in the third quarter may be at a trough, "he said.

The company's polyolefin business executives stated that in the long run, the company will slow down the pace of capacity expansion, and the momentum of demand rebounding from low points may be strong.In order to achieve the goal of saving raw materials by better batching and mixing,WalthMac provides Gravimetric Batch Blender to help manufacturer achieve this aim.http://mao.ecer.com/test/gravimetricsystem.com/sale-40386812-mixing-granules-powder-gravimetric-dosing-mixing-system-blending-pvc-pe-pp-material.html

(The text comes from the official website of China Plastics Online)