Market Overview

Demand for polyethylene (referred to as PE hereafter) declined in multiple demand fields due to sluggish economy due to the permeation of novel coronavirus infections in 2020. Although some growth has been witnessed in 2021 as a repercussion of the preceding year, the market deteriorated in 2022 again, mainly in manufacturing sector, owing to the soaring material prices and shortage of components like semiconductors. Consequently, the shipment volume of PE in 2022 (based on the shipment volume at manufacturers, including exports) shrank to 94.9% of the previous year to 2,272,000 t.

Viewing by the segment, the shipment volume is generally declining, where the shipment volume of HDPE fell to 701,000 t (93.5% of the preceding year), LDPE dropped to 642,000 t (94%), and L-LDPE diminished to 743,000 t (95.9%). Meanwhile, although the shipment volume of EVA foam has also decreased marginally to 186,000 t (99.5%), the demand remains relatively stable due to the shift in its primary application to industrial materials and food packaging, which are required in variety of grades and smaller lot sizes, because the rise of Chinese solar cell manufacturers dried up the domestic demand for solar cell sealers.

Noteworthy Topics

Recyclable Biomass-Derived Polyethylene & Recyclable Polyethylene Variety Widens

To contribute to the realization of carbon neutral and circular economy (circular society), PE manufacturers are developing plant-based biomass materials (bio-PE), recycled material-based PE products, and PE products that are easier to recycle such as mono-material packaging.

For example, Sumitomo Chemical released “Meguri™” as its recycled plastic brand in 2021, and Prime Polymer Co., Ltd launched “Re'PRM®” and “Prasus®” as its new polyolefin brand in 2022.

As per materials for mono-material products, Sumitomo Chemical launched “Sumicle®”, the high-rigidity PE, and Dow Chemical Japan (referred to as Dow hereafter) released INNATE™ TF Polyethylene Resins for Tenter Frame Biaxially Oriented Polyethelene (TF-BOPE). Meanwhile, Dow’s “RETAIN™” polymer modifier and Tosoh’s “Melthene® -S” contribute to horizontal recycling (which refers to recovering and processing used products into raw materials to be used to reproduce the original item) by serving as compatibilizer for composites. Other materials include “Novatec™ HD HB330EBP”  by Japan Polyethylene Corporation and PCR resin* “REVOLOOP™” by Dow.

* PCR (Post-Consumer Recycled resin) is a resin made with collected plastics that are used by consumers.


 

Future Outlook

Shipment of PE in 2023 is expected to reach 2,333,000 t, 102.7% of the previous year.
A shift of the legal status of the COVID-19 to Category 5 infectious diseases and the end of strict border control measures are expected to uplift overall consumption, expanding people’s economic activities and increasing the number of inbound tourists visiting Japan. Consequently, the shipment volume of PE is forecasted to exceed that of the previous year.


 

Research Outline