Resin price increase efforts meeting stiff downstream resistance. Hopes for improved demand on depleted distributor inventories.
Crude prices near $76 per barrel. Weak reports on economy and a stronger dollar send oil prices down. Oil prices have more than doubled from a low of less than $33 touched in December, although they are still well below highs of $147 a barrel touched last year. Natural gas for December delivery fell 7.2 cents to $4.40 per 1,000 cubic feet. Natural gas is used to produce LLDPE stretch film in the U.S.
Business News Reports November 2009
Prices for Polyethylene were up .015 / lb on the back of limited supplies, good export demand and firmer sentiment towards November price increases. Resin producers are seeking to implement $.03 - .05/lb increases for November contracts.Steady, but high asking prices were shown by producers as they dig their heels in, pressing to enforce current price increases.Export demand was good. Asian traders were more aggressive, bidding for material at higher prices than the previous week. Strong interest was seen from Latin America too, with buyers also willing to pay up.
Trade Reports November 2009
Polyethylene prices on average were up $.015/lb last week, as word began circulating that the November price increase might have some legs. Domestic processors are frustrated with the prospect of Polyethylene contract prices again moving higher. Prices are already up $.17/lb during 2009 and PE production margins are considered wide. As consumer demand languishes, resin throughput is still off, making it difficult to promptly pass along each price increase; some processors are reportedly still struggling to pass the most recent $.04/lb further downstream. Plastics Trade Analyst November 2009