What The Trade Is Saying!
Proposed 4-cent August increase in question. Resin buyers balk at new increase in light of current business climate.
Average U.S. selling prices for resin have bounded up since July 1, fueled by rapid rises in feedstock prices. Benzene - a key feedstock used in the production of many commodity resins - closed at $2.92 per gallon in July, up almost 25 percent from June. August could bring more of the same, with benzene set to close at $3.65 per gallon, an increase of an additional 25 percent. Plastics Market Reports August 2009
Polyethylene prices firmed this week and participants continued to discuss tight supply and strong export demand. Producers are seeking to implement a 4-cent increase in PE prices in August. The outcome has not been determined and negotiations continue.
Market Analyst August 2009
Chemical makers post big sales declines; see recovery. Four U.S. chemicals makers reported significant declines in sales as the global recession strangled demand from their key markets, but indicated that demand was recovering. Volumes in many end markets improved sequentially from the first quarter of 2009 to the second quarter, and continue to do so in the third quarter. Expect that end-market demand, although stabilizing will remain soft. These operating conditions will continue through to the end of this year.
Plastics Business Reporter August 2009
Oil rises towards $68. Weakness of the dollar, rising stock markets and hurricane related risks to disruption in the U.S. are supportive to all energy markets today. Expectations of a turnaround in the global economy have sent crude up from lows below $33 a barrel in December. Crude is still far off July 08's record of more than $147 a barrel. Natural gas for September delivery fell slightly.News Reports August 2009