Resin Pricing May 30th 2012 by quick pak inc

Efforts to stem price erosion in May have been dashed and weak feedstock markets allied with softening demand now point to a an even further drop in June pricing.

Trade Reports May 2012

Three commodity resin prices drop. Prices for three major commodity resins - polyethylene, polypropylene and PVC - have tumbled in May, as resin makers suddenly found themselves with too much of a good thing. The good thing in this case is ethylene feedstock. With several petrochemical crackers fixed up and back online, there's more ethylene - and propylene - available than at any point this year so far.
Trade News May 2012

Prices for polyethylene slid another $.02/lb; the market is now down $.08/lb over the past 6 weeks. Falling energy and feedstock costs have contributed to the negative sentiment gripping the market. Resin producers have offered to drop May contracts by $.04/lb and in the meantime have been generally willing to meet lower-priced competitive situations. Domestic purchasing is very sluggish..
Trade Reports May 2012

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 this cycle’s highest resin prices has well and truely passed.
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 May 2012


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