The Plastics Exchange Week in Review 6637

The volume of spot trading for polyethylene (PE) last week was low with firm prices, according to trading platform The Plastics Exchange (TPE; Chicago; for more information, including detailed, historical pricing charts, go to www.theplasticsexchange.com). In anticipation of a $0.04/lb proposed price increase for April, PE producers are limiting resin offers. For Hexene-based materials, TPE reports that PE producers are looking for a $0.07/lb price increase on the basis of higher monomer costs. Natural gas fell $0.13/mm Btu for the week to $7.60, and spot ethylene was active but lower at $0.365/lb. TPE anticipates a slower period over the next couple weeks as processors reject producer offers in the high $0.50’s and low $0.60’s on a per pound basis for PE.

In polypropylene (PP), TPE reports that trading volume was average with higher prices, due in part to a $0.04/lb increase in propylene, and a proposed $0.04/lb increase in PP for April. TPE says this could pose a problem to nonintegrated PP producers, who will have to raise resin prices to absorb higher monomer costs.

TPE reports that polystyrene (PS) trading volume was average, with firmer prices, as there were few prime offers or readily available offgrade resin. TPE says PS producers are working to implement a $0.03/lb price increase for April, with quality PS now in the low $0.70’s/lb range.