Quick Packaging News

The Polyethylene market kept its active trading pace supported by a small step up in demand. There were relatively heavy offerings of wide spec railcars, while prime material was made available from resellers looking to dish off a portion of their forecasted commitments.  Most PE grades dropped another penny with the exception of LLDPE Film, which managed to hold flat on the week. As expected, contract prices for Linear Low-Density Polyethylene (LLDPE) came in flat at the end of April. The settlement for the month was not delayed like previous months. Not to say the settlement was any less contentious, but in the final days of April, producers made the decision easier by deciding to push the proposed $0.05 increase for April to May. Looking at the supply and demand for the month, both buyers and suppliers have good reasons to press their cases. Buyers push for lower prices was dominated by talk of soft domestic demand, declining production cash costs, enhanced production capa...

Spot Polyethylene trading ended April with a flurry as still rising prices sent buyers to procure in a hurry. PE prices rose $.01/lb across the board, except for LDPE for film, which gained an extra half-cent. It is typical to see this premium expand in rising markets. Most market participants expected April PE contracts to roll flat, but a major consultancy assessed April contracts up $.03/lb, adding a level of confusion to PE pricing.   The Plastics Exchange, had already turned bullish on Polyethylene, so while we think that the current pricing action is awkward, we have nothing to complain about. It now seems that April contracts could very well be confirmed up $.03/lb and there is another $.03/lb increase on the table for May – which will make for some interesting producer / processor discussions. More info at: www.quickpakinc.com