Market Update & Summary February 12th, 2013:
Market Update & Summary February 12th, 2013:
Polyethylene asking prices moved higher this past week, but when material actually changed hands,
prices were mostly steady to just a tad higher. Producers are looking to add to their $.05/lb January
gains through the implementation of another $.04/lb increase in Feb, although they are meeting steep
resistance from processors. While Generic Prime railcars are available, we have not yet experienced a
flat out spot purchase reflecting the full Feb increase. Orders are more often being placed at the up 4
price, with the caveat that the increase will be rebated if it doesn't hold industry-wide. South American
and European Polyethylene interest waned as US prices increased; however, International traders are
anticipating resurgence in activity after the Chinese New Year.
February ushered in a new round of price increases, buyers have heard this tune before, but at this point
there is just not a whole lot they can do about it. The writing was on the wall late last year with so many
crackers slated for maintenance during the first quarter, but the rally arrived early when a few crackers
came offline prematurely with unplanned outages. Those that wisely stocked up on resin in December
are working off lower cost inventories, but those that didn't simply cannot resist and have to pay up.
What goes up does eventually come down, but the light can not yet be seen at the end of this tunne
Polyethylene asking prices moved higher this past week, but when material actually changed hands,
prices were mostly steady to just a tad higher. Producers are looking to add to their $.05/lb January
gains through the implementation of another $.04/lb increase in Feb, although they are meeting steep
resistance from processors. While Generic Prime railcars are available, we have not yet experienced a
flat out spot purchase reflecting the full Feb increase. Orders are more often being placed at the up 4
price, with the caveat that the increase will be rebated if it doesn't hold industry-wide. South American
and European Polyethylene interest waned as US prices increased; however, International traders are
anticipating resurgence in activity after the Chinese New Year.
February ushered in a new round of price increases, buyers have heard this tune before, but at this point
there is just not a whole lot they can do about it. The writing was on the wall late last year with so many
crackers slated for maintenance during the first quarter, but the rally arrived early when a few crackers
came offline prematurely with unplanned outages. Those that wisely stocked up on resin in December
are working off lower cost inventories, but those that didn't simply cannot resist and have to pay up.
What goes up does eventually come down, but the light can not yet be seen at the end of this tunne
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