Quick Packaging News

Domestic Linear Low Density Polyethylene (LLDPE) hexene contact pricing remained unchanged for the month of February. Flat pricing was a highly contested result for the month as producers were pushing for a $0.03 to $0.05 increase, pointing to modestly improved demand and constrained production in the first two months of the year. However, ample inventory across the supply chain remained the dominant factor giving buyers the ability to push back on proposed price increases for the month. Understand, producers are not giving up on their plans for an increase. Instead of canceling proposed February increases, they have moved their increases to March, and those increases are now between $0.05 and $0.06. On paper, producers’ insist the increase is needed because of higher demand domestically, and specifically high demand in exports to Asia and Latin America. Behind the scenes we know operating margins at these producers are at a ten year low. Like any business in the past two years, re...

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      

 Polyethylene Resin Pricing News.   Polyethylene trading was more active, and our spot pricing was steady to another cent lower. Transactions were well spread across LDPE and LLDPE, both film and injection grades, while HDPE transactions were a challenge to complete.  Off grade railcar offers streamed in and suppliers remained willing to discount heavily to move material. We have seen several rounds of aggressive sales into the export market and there was another this past week. Plastics Pricing News