The global polyolefins industry faces "a pivotal year" in 2025 as global economic, regulatory and competitive pressures converge, according to market analyst Ashish Chitalia.
In a recent email interview with Plastics News, Chitalia said the industry "will be navigating a challenging environment" next year because of dynamic shifts in trade policies — particularly in Brazil and China — and a potential corporate tax restructuring in the U.S.
Chitalia added that, in North America, continued pricing pressures on polyethylene resin reflect sluggish export demand, while Europe deals with excess inventory and cautious economic conditions.
As China moves toward self-sufficiency in key petrochemicals, including polyolefins, the global market faces intensified competition, according to Chitalia. This shift is prompting U.S. producers to conduct strategic reviews of their assets and businesses. It's also leading them to optimize supply chain strategies and accelerate the shift toward differentiated and specialty products and higher-value applications to protect their margins.
Looking ahead, Chitalia said recycling, sustainability and decarbonization "will remain critical priorities" for makers of polyolefins PE and polypropylene.
Chitalia has almost 20 years of market experience, including positions at the WoodMackenzie and Chemical Market Resources consulting firms. His 2025 outlook includes continued emphasis on recycling technologies, renewable feedstocks and sustainable manufacturing to meet regulatory demands and consumer expectations.
Polyolefins makers are increasing their focus on supply chain resilience, Chitalia added, particularly in response to logistics constraints and potential import tax adjustments. These trends also are leading firms to prioritize flexible, adaptive supply networks.
"This trend is expected to continue in 2025, as firms strive to balance economic and environmental objectives," he said.