Commodity Chemical Update—Plastics & Polymers (June 2026)

Research evidence excerpt

Commodity Chemical Update—Plastics & Polymers (June 2026)

Equity Research

Industry Update — June 9, 2026

Chemicals

Commodity Chemical Update—Plastics &

Polymers (June 2026)

PE Prices Were Stable M/M in May

Our Call Michael Sison

CMA reported North American PE prices and integrated margins were flat M/M in May as Equity Analyst | Wells Fargo Securities, LLC

Michael.Sison@wellsfargo.com | 440-662-9664

exports from China and Oman prevented further price increases. CMA sees prices staying

Abigail J. Ebertsflat M/M in June, while producers nominated "hurricane insurance" increases.

Associate Equity Analyst | Wells Fargo Securities, LLC

Abigail.Eberts@wellsfargo.com | 332-877-5728

PE Prices Held Steady M/M in May: CMA reported North American PE prices were flat

M/M while producers had originally nominated increases of up to $0.20/lb for the month.

Both domestic and spot export prices decreased M/M. Demand moderated in May off

historically strong levels in April as customers bought just to meet needs. Production

rates remained elevated as producers took advantage of favorable feedstock costs.

Supply increased M/M.

Integrated Margins Were Stable M/M in May: CMA reported North American integrated

PE margins were relatively flat M/M in May as PE prices were stable. Ethylene prices

decreased during the month. CMA sees integrated margins holding steady through June

and July, before moderating in August, in line with its expected decline in PE prices. CMA

sees integrated margins moderating from current levels for the balance of the year and

into 2028E (exiting 2028E 65-57% below May levels, varying by grade).

PE - Global View: North American PE export prices fell 10-15% M/M in May (varying by

grade). CMA noted that export prices have been on a downward trend since mid-April,