While the previous week was dominated by trader-to-trader activity, this past week saw more processors re-join the market to scoop up any remaining resin that was still priced flat to slightly higher than late September values.
Demand remained robust at the start of the month, particularly from the reseller community as sentiment has turned moderately bullish. Processors were also back in the market, unafraid to pay a penny more than in the previous week.
The spot polyethylene (PE) market was very busy last week, as buyers and sellers completed a relatively high volume of transactions. In general, sellers kept the market well supplied with a good flow of fresh offers.
Buyers were fairly active again, finding value in the cheaper resin, while some Southeast processors began filling short-term supply gaps caused by Hurricane Florence.
Activity was muted in the spot resin markets during the Labor Day–shortened week. However, the PlasticsExchange (Chicago) recommends maintaining ample inventories as potentially disruptive weather systems heat up in the Gulf.
Activity in the spot resin markets slowed down the final week of August, though there were some good spurts that helped solidify a strong month in terms of trading and volume, reports the PlasticsExchange (Chicago) in its Market Update.
Additional production at new facilities in the Middle East will not be sufficient to cover 2018 losses caused by maintenance shutdowns, according to a new report from IHS Markit (London).
The overall polyethylene (PE) market could continue to move lower, as material slated for China seeks to find new homes because of the 25% Chinese tariffs and upstream inventories swell further, according to the PlasticsExchange (Chicago).
The 25% Chinese tariffs on high-density polyethylene (PE) and linear-low-density PE, which are scheduled to be implemented on Aug. 23, have really begun to disrupt the market, particularly in Houston, the major resin export hub.
