Monthly Petrochemical and Plastics Analysis
October CDI down 5 c/lb as expected. There are several reason why PE resin sales orders and production levels in October and November are expected to be well below those in September. First, weaker economic activity both here and with our trading partners is drying up PE resin demand. Second, there is a seasonal soft period for PE resin that has been experienced for many years now. It is possibly the industry seeing an early jump on this fourth quarter seasonal demand softness that is typical for the industry. Next, China is seeing resin demand implode as a a result of their own softer domestic economic activity and the inability to export during the upcoming fourth quarter holiday season. .
Trade Report October 2011