Processors locked into polypropylene (PP) contracts or specific brands are feeling the brunt of the monomer rally, as another cost-push increase, which is starting to target near a nickel, will imminently be implemented.
Polyethylene producers implemented their $0.05/lb increase in February and are seeking to pad margins with another $0.06/lb for March. Polypropylene contracts jumped a whopping $0.165/lb in January and February, and producers are looking to pass through their increase in March propylene contracts.
Polyethylene producers are implementing their $0.05/lb increase for February contracts; another $0.06/lb increase may hit in March. On the polypropylene front, steep back-to-back monthly increases will total around $0.18/lb.