Hoping to recover the $0.06/lb decrease from the fourth quarter, PE producers want to implement two $0.03/lb increases, one in February and the other in March. The PlasticsExchange (Chicago) doubts that the ploy will have traction, however.
Spot polypropylene (PP) prices slipped another cent last week; contracts have lopped off a huge $0.20/lb over the past three months and finally look steady for February, according to the PlasticsExchange.
As winter storms and record cold threaten to grip much of the United States, buyers are advised to plan resin needs accordingly, as logistics delays are expected, reports the PlasticsExchange (Chicago).
Polyethylene producers doubled up fourth quarter relief to now $0.06/lb. But before you go out and splurge on this holiday bonus, know that they have nominated a $0.06/lb price increase effective with January contracts.
Spot prices have been falling and developed a large discount to contracts. Polypropylene contracts should average down $0.10/lb this month, commensurate with a drop in PGP contracts, according to the PlasticsExchange (Chicago).
Resellers are securing spot truckloads instead of full railcars as customers anticipate cheaper resin ahead. Likewise, processors are opting to work off material on hand. These savvy buyers seem to be positioning for special buying opportunities that often occur toward the end of the year.