The spot resin markets slowed significantly, which was expected as the third quarter began with the midweek Fourth of July holiday in the United States. Many participants took a vacation, which hampered transacted volumes, generating below average results, reports the PlasticsExchange (Chicago) in its Market Update.
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The spot market should return to a more typically liquid state this week. Polyethylene (PE) producers once again are trying to enforce their now-aged $0.03/lb price increase. After a volatile first half of the year, PP contracts should see relative stability in July. If high oil prices are sustained, export volumes should be buoyed by firm international prices and arbitrage demand.
Because of the holiday, the spot PE market saw sporadic activity, with little to no volatility and prices flat across the board. Fresh offers were relatively light, especially railcars, though some suppliers affirmed resin availability, if needed. Upstream resin inventories continue to bulge and several large swathes of resin were offered for export only. Several producers re-iterated their intent to immediately implement the elusive $0.03/lb price increase, writes the PlasticsExchange.
Polypropylene (PP) activity was pretty good considering the mid-week holiday, which disrupted the flow of business. PP resin in Houston, mostly off-grade, is priced at a large and growing discount to domestic delivered railcars. Prices softened a tad late in the week, though some traders were then seen taking moderate positions at extra discounted prices. After two months of sharp increases, which totaled $0.13/lb, the market has stalled and July contracts are currently forecast to yield very little change. While there is plenty of material already on the water, brand new PP import deals have slowed since PGP monomer topped out more than a month ago, reports the PlasticsExchange.
Read the full Market Update on the PlasticsExchange website.
