Resin markets: PE price edges higher while PP dropsResin markets: PE price edges higher while PP drops

The spot resin markets were busy throughout April, and this past week did not disappoint, writes the Plastics Exchange in a market update published on May 1, 2015. There was also a sharp divergence noted between the polyethylene and polypropylene markets, continuing the reversal from the trends of the past several months. There was a flurry of polyethylene buying as processors sought to procure material ahead of the May price increase; spot prices again edged higher while supplies dwindled. Polypropylene availability continued to improve and spot prices dropped considerably; as contracts are poised to ease again, buying was limited to last-minute loads needed to fill in for late rail cars. International resin demand has maintained upward pressure on the PE market, although significant logistics constraints are still limiting the actual shipment of resin out of the Port of Houston.