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The Plastics Exchange Week in Review 2243

April 16, 2008

1 Min Read
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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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