Resin producers issue new 5 cpp price increase for October with no agreement on implementation. Order books look better on reports of depleted Distributor inventories.
Due to continuing rising feedstock costs, all polyethylene resin suppliers have successfully implemented a $.04/lb increase effective September 1, 2009. As a result of these raw material increases, we will implement a 6% price increase on all orders received on or after October 1, 2009 and on shipments effective October 15, 2009. All orders received prior to October 1, 2009 must call for immediate shipment. We reserve the right to accept or deny orders and will limit acceptance to normal order levels based on historical sales. In addition to the September 1 price increase, all resin suppliers have announced a $.04/lb increase effective October 1, 2009. We will keep you posted on this and be sure to communicate any developments.
U.S. Stretch Film Producer September 2009
Oil Surges to One-Year High above $82 on plunging Dollar. Oil advanced as much as 3.6 percent as the U.S. currency slipped beyond $1.50 per euro for the first time in 14 months, bolstering the appeal of commodities. Expectations of a turnaround in the global economy has 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 November delivery gave up 6.1 cents to settle at $5.10 per 1,000 cubic feet. Natural gas is used to produce LLDPE stretch film in the U.S.
Business News Reports October 2009
The Polyethylene market was active this week; large new resin offers emerged, pushing prices about $.01-.02/lb lower. Although producers nominated another $.04/lb increase for October, given lackluster domestic demand and a slowdown in exports, pricing will likely be steady at best, and perhaps even give back (not retroactively) the $.04/lb price increase that was widely implemented but not universally accepted downstream.
Plastics Trade Reports October 2009
US-based Berry Plastics has announced that it plans to buy Pliant after the company emerges from bankruptcy. Under a reorganization plan approved by the US Bankruptcy Court earlier this month, Berry was to receive 25% of the equity of Pliant. Berry says it now intends to acquire the remaining 75% of the common stock in the Pliant film business. Private equity firm Apollo Management owns stakes in both packaging film extruder Pliant and Berry, which is a major player in the injection molding, film extrusion and thermoforming sector in North America.
Trade News October 2009