Processors are recognizing the reality of the $0.03/lb September contract price increase, said the PlasticsExchange in its Market Update, adding that it finally saw spot prices firm up a penny midweek.

The pending $0.08 price increase is viewed as unlikely unless there is further turmoil in the Middle East or another large storm, according to the PlasticsExchange (Chicago).

Producers are prepared to increase prices by as much as $0.07/lb in the event of a Middle East military conflict, severe weather situation, trade war resolution or other significant supply chain disruption.

Processors continued to tap into the attractive spot polyethylene (PE) market headed into the long Labor Day weekend. All high-density PE resins and linear-low-density PE film were down a full penny, as new reactors pump out these commodity resins.