Milliken and Co. (Spartanburg, SC) is featured in the first installment of a series centered on a proliferation of polyethylene and polypropylene resin and additive products for packaging from major suppliers.
Polyethylene (PE) pricing was heavily pressured last week, as a revised list of retaliatory tariffs levied by China targeted many of the resins produced by new PE capacity.
A combination of massive upstream supplies and tariff-related uncertainty weighed on the Houston market, with low-density and linear-low-density polyethylene for film weakening by as much as $0.02/lb.
While polyethylene (PE) export shipments have been growing into record territory, and the pace has been accelerating, new capacity has generally exceeded demand.
A major fire broke out on July 15 at the Altamira, Mexico, PTA plant of chemicals manufacturer Alpek (San Pedro Garza García, Mexico). The conflagration could have a significant impact on PET resin production.
Some traders began lowering asking prices trying to thin out inventories in preparation for retaliatory tariffs taking hold—material that would normally be exported to China would suddenly become 25% more expensive, thus crushing demand.
June was, by far, the most active month of the quarter and transactions were voluminous enough to contribute to robust results for the first half of 2018.
