Polyethylene trading improved while prices were steady to lower. After back-to-back decreases in June/July, it seemed that PE producers might finally have luck implementing their $.05/lb price increase on the 4th attempt. However, current demand is proving too soft, perhaps because buyers bought into the notion of the increase and purchased almost 150 million lbs more resin in July than the previous two month average. Maybe the fifth time will do the trick in September…or they should just try for a smaller increase, like $.03/lb. TRADE REPORTS AUGUST 2011 Prices for Polyethylene will settle steady in August as PE buyers resist yet another attempt to implement the nickel increase. The markets will likely remain relatively stable until something new comes along to provide direction, but there is potential to the upside, considering that the season's first hurricane could make landfall in the coming days, but away from the gulf. RESIN ANALYST AUGUST 2011
