Disruptive weather conditions and rising demand have favored the rising prices for Polyethylene and Polypropylene lately

Polyethylene and Polypropylene prices have been witnessing a rise attributed to higher-than-normal demand lately. This surge included significant purchases of packaged truckloads before Hurricane Beryl's approach. Weather forecasts predict that the hurricane will gain strength again in the Gulf and make landfall (Landfall is when the center of a storm or hurricane reaches a landmass, bringing its most intense weather conditions) along the Texas coast, which houses numerous petrochemical and plastic resin production facilities. In anticipation, several producers have decided to shut down reactors as a precaution.

A large volume of PE resin was traded as processors and resellers stocked up in response to the first hurricane of the season threatening US plastics production.

The National Oceanic and Atmospheric Administration (NOAA) has predicted an above-average hurricane season, and later adjusted the forecast to 'extreme' due to the shift from El Niño to La Niña conditions. As of July 11, many in Texas were without power amid heatwaves. Although Hurricane Beryl was only a Category 1 storm when it hit Texas, it caused significant disruptions mainly due to power outages. Shutdowns by companies as a precaution also contributed to these disruptions. Forecasters expect 11 more storms in the Atlantic basin, earlier than the typical peak season in late summer.

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Continued export demand from Latin America has kept US export prices elevated. This demand is fueled by high freight costs and delayed shipments from Asia, prompting buyers to turn to the US for more immediate and competitively priced supplies.

Despite limited new stock, demand remained strong, and buyers continued to purchase available materials at reasonable prices.