Resin Makers Announce Price Increase.

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October Polyethylene Price Increase Adjustments



Several North American resin producers have already announced adjustments to their price increases previously nominated for October Polyethylene. Dow Chemical has issued a 2-cent TVA - Temporary Voluntary Allowance - effectively reducing their $.07/lb price increase to just $.05/lb, matching the magnitude of other company's increases. However, ExxonMobil and Formosa Plastics subsequently each pushed back the implementation of their $.05/lb price increase from October to November, offering to roll contracts flat from September. Other producers will likely follow. It is still just the beginning of the month, and film producers/processors are clamoring for another decrease, so October contract negotiations are far from over...
Trade analyst October 2015

Resin makers announce price increase. Read the letters - (Exxon Mobil) (Dow) (Westlake) (LyondellBasell)

Crude oil prices — used as a global PE price-setter. At the Resin Technology Inc. consulting firm in Fort Worth, Texas, PE analyst Mike Burns said that regional PE prices now are expected to remain flat until oil prices approach $60 per barrel. Beyond that point, he added, regional PE maker may try to raise prices in the first part of 2016.
Trade Reports October 2015

"Polyethylene, supplies are plentiful and prices under pressure."

"Natural Gas was a big loser, slicing off $.18/mmBtu, nearly 7%, to end the week at $2.451/mmBtu, a level not seen since June 2012."

"Polyethylene resin changed hands at a fairly rapid clip as the month drew to a close. Material for all major commodity grades was readily available for immediate shipment and prices eased a penny across the board. Although producers had widely nominated a price increase averaging $.05/lb for October, it seems highly unlikely that it would become implemented."

"It is still early in the month, so it is possible that the market could erode further, contracts already declined a total of $.09/lb between Aug/Sep."
Trade Reports October 2015


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