Resin Pricing

Prices rose and the spot resin markets were busy again last week. Demand continued to improve, particularly for polypropylene (PP), and while resin continued to flow at a relatively swift pace, well-priced offers were snatched up, according to spot-trading platform, The Plastics Exchange (TPE). TPE anticipated a modest decrease in May PP contracts.

Spot prices eased a tad and resin markets were off to a good start in May, with a steady flow of material in railcars and truckloads. Most polyethylene producers held out until the last days of the month before officially pushing off their April price increase, according to spot-trading platform, The Plastics Exchange, but now May contract invoices are marked up the same $0.04/lb pending negotiations.

Both polyethylene and polypropylene prices averaged a penny lower as offers accumulated, and the spot resin market was a bit slower, particularly for the final week of a month. Spot-trading platform The Plastics Exchange (TPE) reported seeing single railcar customers "just pick away at truckloads every week", while larger processors procured fewer railcars as they continue to scale down their inventories.

Polyethylene prices were mostly steady to lower while polypropylene fell $0.02/lb, in a spot resin trading market described as consistent. Spot-trading platform, The Plastics Exchange reported that the quantity of railcar offers increased as large-volume demand softened and was replaced with a steady flow of truck-load orders. "A sense of uncertainty wafted through the market as global energy and commodities markets were hit hard this past week," TPE CEO Michael Greenberg noted.

Average spot prices for polyethylene and polypropylene slid a penny on negative sentiment, as domestic railcar offers were somewhat limited. Spot-trading platform The Plastics Exchange (TPE) noted that spot resin market activity was good and trade continued to flow at an above average clip. A couple unexpected cracker outages are helping PE producers keep their April $0.04/lb price increase alive, but most other market participants doubt its viability.

The spot polyethylene market began the month sliding a half-cent from March month-end levels, while spot Generic Prime polypropylene prices held steady. Spot resin trading was fairly active for the first week of April, according to spot-trading platform, The Plastics Exchange (TPE). Fresh railcar offers were slow to flow, TPE noted, but the pace picked up as the week wore on. National resellers and Houston traders, sensing lower prices ahead, provided good market liquidity from their warehoused stocks.

Worried that that land use for bioplastics feedstocks competes directly with feed and food crops? No need, says European Bioplastics in its recently published booklet “Bioplastics: facts and figures”. Out of a total global agricultural area of 5 billion hectares, around 300,000 hectares are used to grow feedstocks for bioplastics: in other words, 0.006%. Metaphorically speaking, this ratio correlates to the size of an average cherry tomato placed next to the Eiffel Tower.

Some times the journey from world's first to industry standard is a short one. It appears that could be the case for the replacement of aluminum in engine mounts and supports.

The Atlantic recently published an interesting article that went behind the scenes with San Francisco's "first-of-its-kind" trash monitoring and neighborhood outreach program. Part of the crew's job, according to the article, is to track waste and ensure that citizens are throwing the trash in the correct bin. The city's residents are required by law to separate their waste into three colored bins - compost, recycling and landfill.

Polyethylene ticked a half-cent higher while polypropylene shaved another penny, with overall spot resin trading average and off slightly from last week's more active tempo. Spot-trading platform The Plastics Exchange (TPE) reported that PP saw month-end liquidation, much of which cleared at deep discounts. PE was not overly supplied and lack of demand might best characterize that market. March PE contracts were mostly higher, completing the $0.04/lb price increase that was only partially implemented in February.