LLDPE: Steep drop in May pricing...by quick pak inc

Efforts to implement even part of the $.07/lb Polyethylene increase in May have already been dashed weak feedstock markets now point to a steep drop in May pricing.


Trade Reports May 2012



After first quarter increases and a steady month of April, resin buyers are eyeing falling markets and are looking to share in upstream cost savings.

The shift in the pricing cycle seems to be underway. Once the down trend is solidly confirmed, which does appear imminent, it could last for a while. Indicating ever-decreasing resin feedstock costs for at least the balance of 2012. So as long as the industry can avoid a major production disruption it seems like this cycle's highest resin prices might past.

Trade Analyst May 2012



Abundant resin availability has pushed buyers away since they expect prices to slide further. After a run-up in prices during the 1st quarter, distributors and traders, looking to get ahead of what appears to be an imminent drop in prices in the coming months, have become aggressive with their offers as they try to liquidate inventories.

Trade Analyst April 2012

More info on this is available from:


Mike Cunningham

Quick Pak Inc

4007 North 56th Street Tampa, FL 33610

Tel: 813 242 6995

FAX: 813 242 6985

www.quickpakinc.com

mike.cunningham@quickpakinc.com