Quick Packaging News

Polyethylene (LLDPE) hexene contact pricing moved up $0.03/lb. for the month of March. Producers had asked for $0.05/lb., but as the month concluded, they conceded their higher cost demands settling for the $0.03. Once the market settled, the producers announced future increases of $0.05/lb. proposed for April. The primary factor driving the most recent increase was yet another announced supply reduction. On March 21st, 2023, Nova Chemical declared force majeure stating their ethylene cracker in the Sarnia, ON region experienced an unplanned outage, limiting feedstock monomer to regional PE plants. This made Nova the latest of four producers to declare a force majeure in 2023, joining INEOS, CP Chem, and Formosa. Under normal circumstances, polyethylene prices would be soaring amid these production disruptions, but 2023 has not been a normal year.   Softer than expected demand has plagued the market since the middle of December. Some market watchers have pointed to recessionary...

POLYETHYLENE MOVED UP IN JANUARY – After three months of flat pricing, linear low density polyethylene (LLDPE), hexene, contract pricing moved up $0.03/lb. Final settlement came after weeks of negotiations between buyers and sellers at odds over the proposed price hikes.  Producers had been pressing for the higher prices arguing that supply has tightened enough to warrant an increase, while buyers insisted demand was not strong enough to justify a price move. In the end, producers won out and have even doubled-down, proposing an additional price hike of between $0.03/lb and $0.05/lb for February. Hard to say if this increase will pass, a lot of capacity in the stretch film market today.   Manufacturers have added lines and are ramping up production and need a home for all this new film.   Distributors have a lot of film on hand, will see how this increase plays out. More information at www.quickpakinc.com