Since August, polyethylene (PE) producers have secured two increases totaling $0.07/lb, and some are looking to extend the gains in mid-October to a full dime, according to the PlasticsExchange.
The first weekly downtick since Hurricane Harvey hit saw polypropylene (PP) and polyethylene (PE) prices ease a cent almost across the board on the spot resin markets last week.
Although PE producers’ post-hurricane operations have been ramping up, lost production has created a short- to mid-term supply and demand imbalance, which supports the current price increase effort.
The industry gulped hard when PP prices rushed up $0.11/lb right after the hurricane. It has taken some time for processors to digest the sharp spike, and prices only edged up another penny or two this past week.
Fearing disruption, buyers sought to secure additional material as an inventory buffer: All commodity grades of polyethylene and polypropylene rose $0.005/lb.
