BARCELONA (ICIS)—European polyethylene (PE) markets face growing pressure from cheaper imports, highlighting the impact of rising overcapacity driven by China and the US. 

-          Plants in Europe operating at technical minimum levels

-          Minimal stocks held amid plentiful supply

-          Demand poor across most end uses, packaging stronger

-          Europe will see more PE imports as global overcapacity grows

-          More polymer plant closures are likely in Europe and other high-cost regions

-          US has more to lose from trade war as it is a major exporter of PE to China

-          Trade flows could change dramatically if tariff walls go up

-          Supply/demand imbalance may take up to nine years to correct