Quick Packaging News

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

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