The pandemic has presented three distinct phases for the plastics industry. In 2020, the priority was human health as economic disruption created asymmetric demand for plastic products. Supply shortages were the challenge in 2021, exacerbated by Winter Storm Uri, which severely impacted production capacity. Supply returned in 2022, but supply chains became the dominant concern.

Entering 2023, odds favor an economic soft landing as opposed to a recession. We can expect steadily improving demand for the plastics industry as businesses work through excess inventories accumulated as a hedge against supply chain disruptions. Resin supply should be plentiful compared with the past two years. New PE and PP capacity in the U.S. and China should increase both domestic and export supply. Easing supply chain and energy costs should help with the availability and cost of imported resins.

The industry has demonstrated remarkable resilience during the past three years. Barring another “black swan” event, we can expect it to find a new and less disruptive “normal” as 2023 progresses.

– Dwight Morgan, Executive Vice President, Corporate Development