LLDPE: Stretch Film Resin Today

For the second week in a row, average spot Polyethylene prices rallied about $.01/lb, with some grades, this time LLDPE, posting stronger gains. The $.06/lb price increase took hold early in the month for most processors and it now appears to be fully implemented industry-wide. There is another $.05/lb increase nominated for May contracts and a newly issued increase of $.04/lb seen floated for June.

Commodity resin prices rose sharply in April and could move higher again in May as resin producers look to pass along their rising energy and feedstock costs. Domestic demand could suffer at these stratospheric price levels, as processors look to buy only as needed. The domestic market is not yet providing signals that a price break is around the corner. (Dow)
Trade Reporter May 2011

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