Ethylene polymers in primary forms market in Italy

Earlier Report Observations

After reaching a high in 2018, the Italian ethylene polymers market contracted in 2019, with volume falling to 2.41 million tonnes and value dropping to $2.64 billion. A slight volume recovery to 2.49 million tonnes occurred in 2020, although market value continued to decline to $2.5 billion. Price dynamics during this period were affected by a significant supply imbalance of ethylene between Europe and the United States, coupled with reduced styrene availability in the EU following shifts away from Russian imports, which exerted pressure on production costs.

Severe market disruptions emerged in 2021 when extreme cold weather in the U.S. caused the shutdown of nearly 90% of polypropylene and 67% of ethylene production capacity. This was compounded by logistical issues and reduced refinery output in Europe and the U.S. due to lower fuel demand during the pandemic. The resulting raw material shortage drove polymer prices to record highs, catapulting the market value to $4.23 billion despite a minor dip in physical volume to 2.46 million tonnes. In 2022, market volume surged by over 50% to a peak of 3.78 million tonnes, indicating a robust recovery from supply constraints, while the market value remained high at $4.34 billion.

A market correction followed in 2023, with average prices for thermoplastics, including ethylene polymers, falling approximately 31% after the previous boom. This price decline coincided with a sharp contraction in physical volume to 2.34 million tonnes and a drop in market value to $3.09 billion. By 2024, the European polymer industry faced renewed pressure from rising raw material costs and supply chain difficulties, leading major producers like Trinseo, BASF, Röhm, and Wacker to announce price increases. In response, the market value stabilized at around $3.09 billion while physical volume saw a modest recovery to 2.41 million tonnes.

Production ethylene polymers in primary forms in Italy

In value, 2017-2020, M $ US

Italy's production of ethylene polymers in primary forms rebounded after two consecutive years of decline. In 2020, output reached 1 175 million US dollars, marking a significant 31.9% increase compared to the previous year. However, looking at the broader period from 2017 to 2020, overall production decreased by 31.2%, with an average annual decline of 11.7%. The lowest point was in 2019, when production fell to 891 million US dollars, representing the steepest drop of 35.4% during this timeframe.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, K t

Italy's production of ethylene polymers in primary forms saw a recovery following a two-year downturn. In 2020, output amounted to 1 173 thousand tonnes, showing a sharp rise of 30.4% from the previous year. Over the period from 2017 to 2020, production decreased by 18.3%, translating to an average annual decline of 6.5%. The lowest volume was recorded in 2019 at 900 thousand tonnes, which also saw the largest decline of 22.6%.

Annual dynamics of production in Italy in kind, 2017-2020, K t

Exports ethylene polymers in primary forms from Italy

Exports in kind, K t

Italy's exports of ethylene polymers in primary forms grew for the second year in a row. In 2020, exports totaled 652 thousand tonnes, reflecting a 13.7% increase compared to the previous year. From 2017 to 2020, exports rose by 14.1%, with an average annual growth rate of 4.5%. The lowest export volume was in 2018 at 566 thousand tonnes, which also experienced a slight decline of 0.8%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, K t

Between 2017 and 2020, Italy's exports of ethylene polymers in primary forms were not heavily concentrated on a few key markets. Germany accounted for 12.7% of exports in kind, France for 10.2%, and Spain for 8.4%. Together, these three countries represented only 31.2% of total export flows, indicating a diversified market distribution.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, M $ US

Italy's exports of ethylene polymers in primary forms in value terms declined for the second consecutive year. In 2020, export value stood at 825 million US dollars, showing minimal change compared to 2019. Over the period from 2017 to 2020, exports decreased by 4.1%, with an average annual decline of 1.4%. The peak was in 2018 at 900 million US dollars, which saw the largest increase of 4.5%, while the largest drop occurred in 2019 with an 8.2% decrease.

Annual dynamics of product's exports from Italy in value, 2017-2020, M $ US

From 2017 to 2020, Italy's exports of ethylene polymers in primary forms in value terms were not highly concentrated. Germany represented 12.9% of exports in value, France 9.2%, and Spain 8.8%. Combined, these three markets accounted for just 30.9% of total export flows, reflecting a broad distribution across multiple destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports ethylene polymers in primary forms to Italy

Imports in kind, K t

Italy's imports of ethylene polymers in primary forms declined after two years of growth. In 2020, imports reached 1 973 thousand tonnes, representing a moderate decrease of 5.4% compared to 2019. The highest import volume was recorded in 2019 at 2 085 thousand tonnes, while the largest increase occurred in 2018 with a 4.9% rise.

Annual dynamics of product's imports to Italy in kind, 2017-2020, K t

Between 2017 and 2020, Italy's imports of ethylene polymers in primary forms in kind were spread across a wide range of partner countries. Belgium accounted for 16.2% of imports in kind, Germany for 15.0%, and France for 13.2%. Together, these three countries made up only 44.5% of total import flows, highlighting a diversified sourcing pattern.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, M $ US

Italy's imports of ethylene polymers in primary forms in value terms fell for the second year in a row. In 2020, imports registered 2 150 million US dollars, showing a substantial decline of 16.4% year-over-year. From 2017 to 2020, imports decreased by 19.7%, with an average annual drop of 7.1%. The peak was in 2018 at 2 881 million US dollars, which also saw the largest increase of 7.6%.

Annual dynamics of product's imports to Italy in value, 2017-2020, M $ US

Data from 2017 to 2020 show that Italy's imports of ethylene polymers in primary forms in value terms were not concentrated on a few key sources. Belgium represented 17.6% of imports in value, Germany 15.5%, and France 12.9%. Combined, these three countries accounted for only 46.1% of total import flows, indicating a varied supply base.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020