The Plastics Exchange Week in Review 2243
April 16, 2008
Steady prices and light trading volume marked polyethylene (PE) prices last week, with the spot market struggling according to Michael Greenberg, president and CEO of spot-trading platform The Plastics Exchange ( TPE ). Greenberg said producers once again limited offers during the first two weeks of the month, as they angle for a $0.06/lb price increase. A drop in ethylene, which has helped producers’ margins, might mean they will relent on any price-increase attempts, however.
Polypropylene (PP) saw average trading volume and higher prices last week, with the spot market adding $0.01/lb, according to Greenberg. Producers intend to implement a $0.05/lb price increase in April, and high and rising feedstock costs, tight margins, and a limited export market have promoted discipline at the producer level, which could make increases possible. On the basis that April PP contracts will increase $0.03-$0.05/lb, resin purchasers continue to be active in the spot market. Greenberg adds that prices in the $0.70’s have become the norm, with offers in the $0.60s, which are historically quite high, now considered a bargain.
In polystyrene (PS), better trading volume and steady prices were found, with spot offers firm and not consolidating after $0.04/lb worth of price increases were put in place over the last two months. According to TPE partner, The PetroChem Wire, benzene prices have stabilized in the higher $3.00’s/gallon. With steadier prices, more spot supplies are available, including generic prime railcars, which had been absent.
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