Price Increases - What the Trade is Saying!
PE prices moved higher this week but trading was light as participants waited to see if proposed new price increases would stick. Producers had originally proposed an 8 cpp increase in July. Some revised that proposal and are now seeking a 4-cpp increase in July, and an additional 4 cpp increase in August. Plastics Business Analyst July 2009
Good News on the Business Front. Several indicators point to a near-term rebound in production, including the Institute for Supply Management's manufacturing and non-manufacturing indexes, durable goods orders and factory orders. All of these reports show that new orders are increasing or headed in that direction, and inventories are being depleted, a combination that points to an increase in production activity. Trade Reports July 2009
Commodity Prices Up Sharply. Recession or no recession, resin makers have taken the gloves off on price increases for many commodity materials. Rising feedstock prices are taking the blame. One factor in rising prices was low inventories for ethylene monomer, as producers throttled down production. Plastics Trade Journal July 2009
Big shutdown in aluminum production signals advance in prices
Record demand for aluminum and decline in supplies means prices will rise
Aluminum's Biggest Shutdown Since 1982 Signals Gain. The biggest shutdown in aluminum production in almost three decades is signaling a 23 percent advance in prices by the end of the year. Record demand for aluminum contracts on the London Metal Exchange, means prices will continue to rise after tumbling as much as 61 percent from a record $3,380.15 a metric ton in July. While the economy is showing signs of improving, this year's 59 percent surge in energy costs may keep smelters off line, limiting production. "We've seen the bottom," said one Analyst "Once the world economy picks up, Aluminum will stand to benefit," Trade Reports June 2009
Film makers implement PVC Increase
Resin producers enforce price hike. Higher raw material costs cited. Film demand reflects pick up in disposables sales.
Significant increases in raw material costs make it necessary for Pliant Corporation to increase prices 7% on all of its PVC Packaging Films. The increase will be applicable to Supermarket, Laundry Wrap, and Cutter Boxes. It is effective with orders placed on or after Monday, June 29th
U.S. PVC Film Producer June 2009
Prices Are Inching Back Up. Commodity resin prices are moving up gradually, if not as fast as suppliers wish. Low domestic demand and soft monomer prices restrain hikes, but revived exports and tight monomer supplies could change the picture.Plastics Trade Journal June 2009