Stretch Wrap Pricing on the Rise in Feb 2020
North America: Contract PE prices settled higher by 4.0 cents per pound in January as sellers achieved the increase they have been pursuing since September of last year. PE producers have announced their intent to increase contract prices by an additional 4.0 - 5.0 cents per pound in February. Domestic demand appears to be recovering as buyers restock inventories that were depleted at year end. Resolution of the settlement was complicated by the fact that the January negotiations were characterized by multiple diverging market indicators. Factors cited by sellers in support of a price increase included the following: 1. Reduced inventory levels: IHS Market inventory analysis indicates that PE resin days of inventory have declined in each consecutive month since July 2018. As of December, the calculated resin days of inventory stood at 36.1 days and reflected the fewest days of available inventory since February 2017. The referenced...