Quick Packaging News

Buyers reported that resin availability is improving but certain grades such as LLDPE C6 and HDPE.  Blow Molding remain tight. Production in the US continues to improve with reports that most units are up and running as ethylene supply improves due to crackers coming online. However, several plants are not back to full production with reports of two major producers running at about 80% of the pre-freeze levels due to mechanical/feedstock limitations. Several resin producers are indicating inventory levels should improve in May, resolving many of the force majeure events but allocations are likely to continue through June. Price increases for all PE grades of 5-6 cpp have been communicated to the domestic market effective May 1, 2021. Domestic HDPE spot prices (FOB Houston Railcar) were reported in the range of 83-87 cents per pound (cpp) on a notional basis. LLDPE butene resin prices were reported in the 80-84 cpp range (down 1 cpp) and LDPE was reported flat with prices in the ran...

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...