Resin Pricing

Spot PE trading ended April with a flurry, as still-rising prices sent buyers to procure in a hurry. Spot PP resin added another cent, bringing the two-week total to $0.03/lb.

High-density and linear-low-density polyethylene (PE) film resins added a half-cent, while low-density PE for both film and injection and linear-low-density PE for injection were all up a full penny last week.

Global bio-based plastics market for packaging is forecast to reach a value of $15.6 billion in 2027.

The polypropylene (PP) supply/demand dynamic is tight enough that any further production issues could trigger rising resin prices, especially considering the bullish monomer curve, according to the PlasticsExchange (Chicago).

After several months of relaxed buying, domestic demand improved in March and has continued into April. More opportunity is seen for rising prices rather than further weakness from a seller perspective.

Demand is expected to ramp up, as market sentiment turns slightly bullish.

Completed volumes were high, contributing to a strong month and one of the best quarters, only barely eclipsed by the extraordinary hurricane market of late 2017, reports the PlasticsExchange (Chicago) in its Market Update.

In a minor reverse of trend, spot PE prices all dropped $0.005/lb, while PP prices finally saw an uptick, though only that same half-cent.

Lax demand caused sellers to shave prices to gain orders, resulting in a half-cent decline in both homo- and co-polymer polypropylene.

With prices already off around $0.20/lb these past four months, some processors are starting to buy more than they currently need.