Spot-trading volume of polyethylene (PE) was very strong with steady prices, according to The Plastics Exchange (TPE; Chicago), with several producers holding spot offers $0.04/lb higher, mirroring their nominated August contract increase (for more information, including detailed, historical charts, go to www.theplasticsexchange.com). TPE reports the $0.04/lb price increase follows a July jump of $0.05/lb, but it isn’t likely to stick until September. Producers seem dedicated to the increase, however, with several already nominating a $0.05/lb price increase for Sept. 15. Given the timing of the proposed increases, TPE points out that PE resin buyers now face pressure to place offers early next month, or theoretically pay $0.09/lb more for their PE. Export demand to South America and Europe remains strong, relieving some pressure.

Polypropylene (PP) trading volume was good with mostly steady prices, although early August generic prime PP offers were priced $0.03-$0.04/lb higher than July. August monomer contracts are $0.0175/lb higher, which could lift PP polymer prices $0.015-$0.020/lb.

In polystyrene (PS) trading, volume was fair with steady prices, as spot prices remain within the range of $0.70/lb. Consistently high prices have dampened demand and led producers to be more disciplined in their output. This has restricted spot supplies and forced buyers to purchase prime resin contracts. Good offgrade high-impact PS is priced in the mid-$0.70’s/lb, with general-purpose PS in the low $0.70’s/lb, according to TPE.