Resin and Stretch Film Pricing - Up or Down???

Polyethylene trading was relatively slow and prices were mostly steady, with some variance seen amongst grades. While Prime levels have remained firm, we are seeing some weakness develop for offgrade materials. The spot PE market feels tired after rising as much as $.09/lb during Jan, as it swung from a discount to premium to contracts. The marketplace has essentially accepted the $.04/lb increase slated for Feb and several producers, who apparently wish to seal the deal, have backed the increase with another $.03/lb nomination for March.




Spot Polypropylene prices pulled back sharply, falling $.04/lb on average, as feedstock prices plunged. Offgrade prices had already started to come undone and now generic prime prices have begun to follow. Resin sellers, recognizing that the top of this rally is already in place, dropped asking prices while seeking orders. Resin buyers, who did not have an urgent need for material, backed away from the market, allowing gravity to do its job. 

Relief of monomer cost-push pressure will translate to reduced PP prices, but probably not have a huge impact on spot supply, which remains tight. Still, Feb PP contracts will come down and should wipe away part of the Jan $.09/lb increase.

Stretch film makers announce February increase(Sigma) (IPG) (Amtopp) (Berry)

Resin makers announce increase for February. 
Read Letters (Chevron Phillips) (Exxon Mobil) (Dow)

More info at: www.quickpakinc.com

Comments

Popular posts from this blog

Protect your Stretch Wrapper from being hit by the Forklift

Black Strapping Amazing Deal - buy one get one free.