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.
Resin prices have been on a special discount and some buyers, knowing that holiday sales do not last forever, began to procure larger sized orders preparing for January needs.
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.
Nearly all grades of polyethylene (PE) and polypropylene (PP) lost ground, typically between $0.01 and 0.02/lb, reports the PlasticsExchange (Chicago) in its Market Update.
Trading activity was heavily skewed toward polyethylene over polypropylene in a week that saw one of the year’s best numbers in terms of completed volumes.
