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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.
A series of events jarred the resin trading markets last week, including the attack on Saudi oil infrastructure and a flash flood near the heart of Houston-area petrochemical facilities, but prices remained remarkably stable.
Producers are prepared to increase prices by as much as $0.07/lb in the event of a Middle East military conflict, severe weather situation, trade war resolution or other significant supply chain disruption.
Contract prices (not including unreported discounts) have remained relatively high, but producers have been generous with their spot discounts, which provide savvy buyers with great deals, reports the PlasticsExchange in its weekly update.
Processors continued to tap into the attractive spot polyethylene (PE) market headed into the long Labor Day weekend. All high-density PE resins and linear-low-density PE film were down a full penny, as new reactors pump out these commodity resins.
A steady flow of offers was met with eager buyers, and completed volumes were again well above the 2018/2019 average. Since both buyers and sellers were very willing participants, spot prices stayed flat across the board.