November increase attempt did not stick market-wide. Additional $.03/lb previously announced December increase remains on the table.Stretch demand improves.
PE producers will again seek to implement the $.04-.05/lb increase that did not stick market-wide in November, and if successful, an additional $.03/lb that was previously announced for December contracts. Very little fresh supply was presented to the spot market this past week January Crude Oil futures recovered from six week lows of $72.39/bbl to end at $76.05/bbl. Jan Natural Gas futures surged $.434/mmBtu, a 9% gain, to end the week at $5.192/mmBtu. After two weeks of stability, spot Ethylene prices rallied this week.
Trade Reporter December 2009
European Plastics Converters (EuPC), the Brussels-based organization for plastics processors, has attacked the plastics raw material price increases announced by suppliers in recent weeks. "Markets are currently too fragile to cope with this kind of increases," said EuPC Managing Director Alexandre Dangis. "Converters are unable to pass these down the value chain onto their customers. Raw material producers are endangering the economic recovery of the plastics markets and are displaying a poor knowledge of business conditions at the sharp end experienced by their processor customers," he warned.
Global Plastics Reports December 2009