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US destocking , Asian demand fuel record resin exports in 2023

By Michael Angell

North American production of plastic resins outstripped rising domestic demand in 2023 , boosting exports of chemicals and plastics to record levels . The US Gulf Coast remains the primary gateway for chemical exports , but ports in the US Southeast are also seeing volumes rise as new production comes online along the Eastern Seaboard . Containerized US chemical exports rose 5.7 % to a record of more than 1.9 million TEUs last year , surpassing the previous all-time high set in 2020 by 6,445 TEUs , according to PIERS , a sister product of the Journal of Commerce within S & P Global . That growth was driven almost entirely by polyethylene and polypropylene resins , volumes of which surged 20.5 % year over year to a record 1.1 million TEUs .

Thanks to abundant supplies of cheap natural gas feedstocks , resin plants in North America have the lowest production costs in the world , said Heather Rose- Glowacki , senior director at the American Chemistry

“ The growth in US resin exports ... is about the cost advantage of US natural gas feedstocks .”

US Southeast ports are handling more resins as new production comes online outside the Gulf region . Shutterstock . com manufacturers held about $ 28 billion in plastics inventories , Census data shows .

“ There was a big issue with customer destocking during 2023 ,” Rose-Glowacki said . “ It was a tough time for producers .”

Getting cargo ‘ moving ’

Council ( ACC ). Producers in other countries rely more on expensive crude oil feedstock , creating an opportunity for North American exporters .

“ The growth in our resin exports , particularly polyethylene and polypropylene , is about the cost advantage of US natural gas feedstocks ,” Rose-Glowacki said .

Export markets are benefiting as US resin production outstrips domestic demand , Rose-Glowacki said . During 2023 , US production of polyethylene and polypropylene resins rose 7.8 % year over year to 76.6 million pounds , according to ACC data , while US demand grew 5.2 % to 75.3 million pounds .

Domestic demand could dip further amid destocking . US manufacturers built up a record $ 35.2 billion in plastics and rubber inventories by August 2022 , according to the US Census Bureau . That followed a surge in pandemic-era plastic packaging demand and a 2021 supply shock due to a winter storm in Texas that forced many resins producers to shut down .

Since then , plastics inventories have fallen to $ 32.8 billion as of February as North American customers pare their purchases . Just prior to the COVID-19 pandemic , US

A fully functioning global supply chain , ample vessel capacity and significantly lower freight rates also helped to

Chemical exports slipping from 2023 high-water mark

Monthly containerized US chemicals and resins exports , in laden TEUs , with year-over-year percentage change

TEU volume

Source : PIERS , S & P Global

TEU Year-over-year % change

Year-over-year % change

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48 Journal of Commerce | May 20 , 2024 www . joc . com