Chemicals: Weekly Chains Update

Research evidence excerpt

Chemicals: Weekly Chains Update

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May 18, 2026 02:36 AM GMT

Morgan Stanley & Co. LLCMChemicals | North America Vincent Andrews

Equity Analyst

Weekly Chains Update Vincent.Andrews@morganstanley.comTurner W Hinrichs +1 212 761-3293

Research Associate

Turner.Hinrichs@morganstanley.com +1 212 761-1269

Steven K Haynes, CFA

North America Polyethylene (PE) market update: spot domestic prices were -3cpp Steven.Haynes@morganstanley.com

Justin T Pellegrino

to -1cpp week-over-week (FOB Houston, railcar), and spot export prices were -3cpp

to flat week-over-week (FCA Houston, railcar). Reports indicated slow demand this Justin.Pellegrino@morganstanley.com +1 212 761-4054

past week. Some buyers have reportedly built up inventories and shifted to

Chemicals

purchasing only needed volumes in anticipation of lower prices in coming weeks. In North America

export markets, commentary reflects slow activity this past week, and preliminary Industry View In-Line

data for April shows export volumes below expectations. Specifically, April export

volumes were reportedly ~8% lower month-over-month (~9% higher than February,

though below monthly levels across 2H25). Reports attributed the volume

reduction to higher prices, cautious purchasing and competitive Asian offers. Earlier

reports had also indicated that producers were prioritizing sending volumes to

foreign affiliates over sales into export markets, which may have had some impact

during the month. In May, traders expect that prices will decline in coming weeks to

support higher volumes. While reports indicate that competitive Chinese offers are

in part driving expectations for price declines, importers in South America reported

HDPE/LLDPE offers this past week in similar ranges to the FAS Houston prices