Plastic prices have fallen since the middle of last due to an increase in supply from new plants in the US along with reduced growth in market demand, especially from China, said the Financial Times. In what is seen as a sign of an economic slowdown, the price high-density polyethylene in China has dropped by 18% from last year, according to petrochemical market information service ICIS.
Falling prices in plastic are also related to oil prices and the downward trend of crude oil prices since October. The lower prices particularly affect chemical companies.