Stock Markets April 7, 2026

Baird: Plastic Resin Costs Surge Through March, Further Increases Anticipated

Polyethylene and polypropylene notch sequential gains; producers signal additional price steps while Middle East supply disruption tightens global feedstock flows

By Caleb Monroe
Baird: Plastic Resin Costs Surge Through March, Further Increases Anticipated

Plastic resin prices rose again in March with polyethylene (PE) and polypropylene (PP) each increasing $0.10 per pound from February. Average PE settled at $0.67 per pound, roughly 29% higher year-to-date, while PP reached $0.62 per pound, up 34% year-to-date. Baird says inflationary pressure on resin markets is likely to persist into the near and medium term and that contractual price hikes are pending for the coming months.

Key Points

  • Polyethylene averaged $0.67 per pound in March, up about 29% year-to-date; HDPE $0.66, LDPE $0.72, LLDPE $0.64.
  • Polypropylene reached $0.62 per pound in March, a 34% year-to-date rise; propylene increased $0.10 sequentially.
  • Producers have announced contractual increases for PE of around $0.20 per pound for April and May; ICIS projects a $0.16 per pound PP rise in April.

Overview

Plastic resin costs extended their upward trend in March, as both polyethylene and polypropylene recorded another $0.10 per pound month-to-month increase, according to a report from Baird. The firm highlights continued inflationary dynamics in resin markets and notes producer positioning that could sustain further price rises.

Price details

On a product basis, the average price for polyethylene was $0.67 per pound in March, representing a $0.15 per pound increase year-to-date, or approximately 29%. Individual PE grade pricing was reported at $0.66 per pound for HDPE, $0.72 per pound for LDPE, and $0.64 per pound for LLDPE.

Polypropylene prices climbed to $0.62 per pound in March, reflecting a 34% increase year-to-date. Baird also noted that the underlying monomer for PP, propylene, rose by $0.10 per pound on a sequential basis.

Supply and feedstock considerations

The report attributes part of the global feedstock cost increase outside the United States to conflict in the Middle East, which has effectively taken the region out of the polyethylene export market. Prior to this disruption, the Middle East had been one of two net exporters of PE worldwide, the other being the United States.

Contractual price actions and short-term outlook

Major resin producers have announced further contractual price increases for upcoming months. For polyethylene, increases of roughly $0.20 per pound are pending for both April and May. Separately, ICIS is forecasting a $0.16 per pound rise for polypropylene in April.

Baird cautioned that near- and medium-term market dynamics are likely to remain inflationary, with producers positioned to press through increases on a go-forward basis. The firm expects that the current inflation cycle will create pressure points in the second and third quarters, with margin recovery anticipated in the second half of 2026.


Key takeaways

  • PE average price: $0.67 per pound in March; up $0.15 YTD (about 29%).
  • PP price: $0.62 per pound in March; up 34% year-to-date; propylene rose $0.10 sequentially.
  • Contractual increases pending - approximately $0.20 per pound for PE in April and May; ICIS forecasts $0.16 per pound for PP in April.

Risks

  • Sustained inflationary pressure in resin markets may create margin pressure for downstream users in Q2 and Q3 - particularly impacting packaging, consumer goods, and manufacturing sectors.
  • Removal of the Middle East as a polyethylene exporter has tightened global feedstock availability outside the United States, introducing supply-side risk for import-dependent regions.
  • Pending contractual price increases for April and May could translate to higher input costs for converters and brand owners, affecting unit economics across consumer product supply chains.

More from Stock Markets

Apple Shares Fall After Reports of Foldable iPhone Engineering Setbacks and App Store Slowdown Apr 7, 2026 BofA: US Economy Now Less Vulnerable to Oil Shocks Than Europe Apr 7, 2026 Humana Shares Jump After CMS Finalizes Stronger-Than-Expected 2027 Medicare Advantage Rates Apr 7, 2026 AstroNova Shares Surge After Board Launches Strategic-Alternatives Review Apr 7, 2026 Barclays Sees Muted Market Volatility Ahead of Iran Ceasefire Deadline Apr 7, 2026