With all Houston-area petrochemical plants affected by Hurricane Harvey finally fully operational or well on their way, the spot resin markets have reverted to a more typical environment, at least for the moment.
The spot polyethylene (PE) market transitions from a seller's market, as most hurricane-affected plants return online, resin imports begin to hit U.S. shores and three new PE resin plants ramp up production.
Materials suppliers are worried about the impact of the imminent “resin tsunami,” but the massive September production disruption will temper the effect of additional supply, according to the PlasticsExchange (Chicago).
The industry gulped hard when PP prices rushed up $0.11/lb right after the hurricane. It has taken some time for processors to digest the sharp spike, and prices only edged up another penny or two this past week.