- Companies including Dow Chemical (NYSE:DWDP) and ExxonMobil (NYSE:XOM) have brought a wave of new capacity on stream over the past couple of years to take advantage of low-cost shale gas as a feedstock.
- But the prices of commonly used plastics have fallen sharply since last summer, as a surge in supply from new plants coming on stream in the U.S. has met flagging demand growth, particularly in China, FT reports.
- The price in China of high-density polyethylene, a benchmark for other similar plastics, has dropped by 18% from its peak last summer, according to ICIS, a petrochemical market information service.
- Related tickers: LyondellBasell (NYSE:LYB), Eni (NYSE:E), Chevron (NYSE:CVX), Total (NYSE:TOT), Royal Dutch Shell (RDS.A, RDS.B), BASF (OTCQX:BASFY), Lanxess (OTC:LNXSY), Henkel (OTCPK:HENKY)