US PE exports turn to Southeast Asia and Africa

According to the ICIS report on January 17, it is expected that by 2019, the US exports of polyethylene (PE) to high-growth regions such as Southeast Asia and Africa will continue to grow, because under the influence of tariffs, exports to China will drop sharply.

Trade data is limited and only lasts until October 2018, but a clear pattern has emerged.

The latest data from the US International Trade Commission (USITC) compiled by Accenture Consulting shows that from July 2018 to October 2018, US high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) were used in China. Exports fell by 55%. Plastic cutting machine

“However, the share of high-growth regions in Vietnam, Malaysia, Indonesia and Africa exceeds this proportion. Especially in Vietnam, exports of finished products are strong,” said Paul Bjacek, head of chemical research at Accenture.

The second round of Chinese tariffs targeting US HDPE and LLDPE was implemented in August 2018, comparing the July data with the latest data for October.

From the US PE exports (including LDPE not within the tariff), from July to October, monthly exports to China fell by 48,000 tons (-62%). However, according to Accenture's analysis, US exports to Southeast Asian countries such as Vietnam, Malaysia, Singapore and Indonesia increased by 78,000 tons (+238%).