Resin Pricing

Processors were good buyers, some procuring resin for usage through the end of the year, while others secured material for the first part of January, which is historically a tightly supplied period.

Much of that activity revolved around distributors, resellers and exporters rather than processors, who have been thinning inventories and waiting for super-special year-end deals.

Heading into December, the PlasticsExchange (Chicago) expects to see more inventory shedding and some end-of-year steals for buyers.

Many processors who had been working down inventories either found value at these price points or just needed to place orders before the Thanksgiving break.

All polyethylene (PE) commodity grades slid another cent last week, except for weak linear-low-density PE film, which dropped a deuce. Even those materials that were not abundant continued to be pulled lower by the overall momentum, reports the...

Spot PE prices dropped a penny, on average, with some variance depending on grade, reports the PlasticsExchange (Chicago) in its weekly Market Update.

Demand was strongest during the first half of the month, as processors flocked to the spot market to avoid paying higher contract prices inflated by the September polyethylene (PE) $0.03/lb increase.

Deal making was challenged last week, as processors minimized required volumes and suppliers squeezed availability to achieve competitive pricing.

The $0.03/lb September increase seems to be firmly intact, while the $0.04/lb hike for October remains doubtful, barring any market-shaking news.

Processors are recognizing the reality of the $0.03/lb September contract price increase, said the PlasticsExchange in its Market Update, adding that it finally saw spot prices firm up a penny midweek.