N.A. Chems and Pkg'g: Plastics Monthly "Reaching the peak?" Spector

Research evidence excerpt

N.A. Chems and Pkg'g: Plastics Monthly "Reaching the peak?" Spector

Global Research

20 May 2026ab

N.A. Chems and Pkg'g: Plastics Monthly Equities

AmericasReaching the peak?

Chemicals, Commodity

Joshua Spector, CFA

Spot market easing after record contract price increases in April Analyst

We think the supply chain has exhausted low cost pre-conflict inventory and joshua.spector@ubs.com

higher production costs will eventually flow through over the next couple of +1-212-713 6188

months which should at least support plastics pricing near current levels. Longer- Lucas Beaumont

term we see a risk that inflation erodes consumer purchasing power and leads to Analyst

demand destruction which more rapidly balances plastics markets. Plastics lucas.beaumont@ubs.com

contract prices jumped higher in April and producers have price/spread increases +1-212-713 4809

out for May. Christopher Perrella

Analyst

We think there is an increasing risk that producers don’t get the higher PE pricing christopher.perrella@ubs.com

in May. We are currently modeling a ~10 cpp M/M increase in PE prices for May +1-212-713 1443

(producers have nominated 20 cpp) with the need for increased market activity

Anojja Shah

and/or higher oil prices in the last two weeks of the month the potential key to

pushing through the hike. Meanwhile, domestic and export spot prices have anojja.shah@ubs.com

moved down by varying degrees since the middle of April (see below) which we +1-312-525 4310

think reflects the market catching its breath and moving past panic buying that

James Cannon

characterized the early stages of the Middle East disruption. Plastics buyers have

Associate Analyst

generally moved to an as needed purchasing strategy with most parts of the james-p.cannon@ubs.com

supply chain limiting inventory risk.