HDPE and Polypropylene Prices to Soar in Australia Amid Disastrous Shipment Container Crisis

The HDPE and polypropylene downstream businesses in Australia have become vulnerable owing to the increasing volatility in shipping industry due to the issue of acute container shortage at ports across the globe which has disrupted the trade of several commodities including petrochemicals. Since, Australia heavily relies on imports for satiating its demand for plastics, the weak off takes due reduction in import activity in the present situation reveals signs of soaring HDPE and polypropylene prices in the coming months in the country.

Shipping movements, which are known for being punctual and economical, are accountable for 90% of the total global trade. However, the ongoing port congestion due to imbalance of global freight supplies triggered by Covid19 outbreak is leading to shipment delays and the consequent increase in freight charges, thus putting extreme pressure over the exporters and importers.

HDPE or high-density polyethylene, containing ethylene monomeric units, is a thermoplastic polymer engrossed with properties of UV resistance, and easy processability that warrants its vast applications in plastic bottles, pipes, toys and chemical containers. Polypropylene is also a form of thermoplastic polymer composed of propylene units. Its susceptibility to chemical reactions and high temperatures makes it a popular material for application in the packaging, construction, electronics, and automotive sectors.

As per ChemAnalyst, the delayed shipments due to port congestion and scarcity of containers have propelled an uproar in the HDPE and polypropylene markets which are bearing the adverse effect in the form of supply shortage and low profit margins. The continued shortage of HDPE and polypropylene in the downstream sectors could lead the plastic market to see upsurge in prices soon which may take a long time to settle as the container shortage issue is forecasted to stay for a large part of the next year.