Spot resin continued to change hands at a quick pace, while prices for both polyethylene (PE) and polypropylene (PP) moved about a penny lower, writes the Plastics Exchange in its weekly report on resin prices.
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PE contracts were up $0.05/lb in May and will hold steady in June, predict Plastics Exchange analysts. Producers have been lifting prices for domestic PE railcars ahead of the $0.05/lb increases nominated for July; however, softer export markets and plenty of material availability are currently applying pressure to the overall market.
May PP contracts were steady to a penny lower and June contracts will be contested, as monomer costs have dropped while producers are looking for another margin-enhancing increase. The petrochemical industry has been fortunate to avoid problematic hurricanes in recent years, but it is worth mentioning that the 2015 season is technically underway.
PE trading remained brisk and average prices slid a cent, according to the Plastics Exchange. Meanwhile, spot PP prices began the week higher, but then lost ground in moderate trading activity. Spot PP activity continued to improve; better availability has been pressuring the high end of pricing, facilitating more transactions.
For the full resin pricing report, go to the Plastics Exchange website.