US resin exports are rising as Middle East conflicts disrupt global supply, with prices tripling and new markets emerging for shippers.
US resin shippers are tapping new customers as Iran's attacks on shipping through the Strait of Hormuz disrupt global plastics supply, reported London's S&P Global.
Export container bookings for resins reached 6,191 on March 16, compared with the usual 3,500 to 4,500 daily bookings. The first week of March saw 22,653 bookings, the highest since January.
The Middle East accounts for 15 percent of global polyethylene supply. With exports blocked, US prices have tripled since February to between US$1,268 and $1,290 per tonne, according to Platts.
Analyst Shruthi Vangipuram of Wood Mackenzie stated that Asian and European resin plants are running at about 70 percent capacity due to higher crude feedstock costs, while US producers are operating near 90 percent.
Export capacity to Asia is ample, with backhaul utilization near 50 percent and spot rates from the US Gulf at $500 to $700 per container. Transatlantic rates are higher, around $1,100 per TEU, according to Xeneta.
Europe has seen polyethylene prices rise by one-third since late February, making it the most likely destination for additional exports.
