US Polyolefin Plastomer Market Continued to Move Downwards in April Amidst Improve Supply Chain

Texas, USA: The Polyolefin Plastomer prices have been decreasing since March 2023 after being stable in February, and it is expected to keep falling till the end of April. Amidst loosening restrictions on the supply chain, cheaper shipping containers, and fewer berth delays, Polyolefin Plastomer export has become more efficient. However, the major reasons for the drop in Polyolefin Plastomer prices may be the declining demand from the automotive industry or the nation's oncoming recession. Due to the economic crisis in the US market brought on by the failure of two major banks, uncertainty has been pervading the market. The automotive industry, which was gradually making a comeback, has recently demonstrated unsatisfactory market performance, which directly affects the market's appetite for Polyolefin Plastomer.

Auto sales remained solid but unspectacular amid the unstable economic climate, and worries about the affordability of new cars have negatively impacted the automotive industry, affecting the demand for Polyolefin Plastomer. Given the current economic hurdles and challenges, the sales momentum is challenging to maintain in the automotive industry. As per market experts, retail sales will remain modest throughout the year, and economic headwinds will constrain the industry as inventory levels rise. In such cases, unless the auto industry started to revive again, the Polyolefin Plastomer market would continue to be sluggish.

The American economy is still growing and is not at risk of entering a recession despite being in an uncertain phase. Despite the high inflation rate, there is still a severe labor shortage, significant consumer spending, and record-high corporate profit margins. If a recession is imminent, it will take some time for these factors to change their direction, delaying any potential slump until at least Q2 2023. Even then, considering the severe staffing shortages of the previous two years, it is uncertain how easily businesses would be able to remove employees. One could argue that declining auto sales are to blame for the drop in Polyolefin Plastomer prices.

As per ChemAnalyst anticipation, "The Polyolefin Plastomer price is expected to take an upturn in May, as the automotive industry is likely to improve their market performance until then, which would increase the consumption of Polyolefin Plastomer in the industry."