While last week’s deals were spread out among all major commodity grades, the bulk of the material that changed hands was polyethylene, especially film-grade resin.
The low end of the Houston market has already ratcheted up two to three cents and scarce domestic railcars have been quoting $0.03 to 0.04/lb higher in May.
Some processors filled in supply gaps, while others, recognizing modest upward pressure in contract pricing, were willing to secure additional material beyond current needs.
By contrast, polypropylene buyers are beginning to recognize the market’s tight supply situation and the possibility that some increase will hold, at least by the end of May.
Anticipating price reductions, processors are buying minimal quantities as needed or to fill in supply gaps. However, resin price increases are on the table for April.
Cambridge Consultants (Cambridge, England) sees a great opportunity for polyhydroxyalkanoates (PHA) bioplastics in convenience food packaging—Catherine Joce, sustainability and circular economy lead, explains why.
PlasticsExchange analysts expect some negative price impact on at least low-density polyethylene, which seems to be the primary commodity resin targeted by China.
