The North American petrochemical industry has traditionally held the number one position in global petrochemical production as well as exports. The North American petrochemical industry has gone through several phases in its lifecycle, starting from its initial growth and capacity expansions to a stage of reduced marginal returns that led to it dealing with a possible slump. The recent slowdown in the North American petrochemical industry has been brought about by the increase in competition from price-competitive producers in the Middle East and Asia. The opportunities for US commodity plastic exports, for instance, have reduced. This is because a large volume of Middle
East plastic export capacity with a significant cost advantage is displacing other exporters in China, the US, Korea and Japan. Another major reason is the resource constraints and high feedstock prices in North America. The rising feedstock prices are forcing many North American petrochemical producers to reassess their profit margins in comparison to that of global players.

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