Packaging Supplies Michigan

“Feedstocks, right now, have nothing to do with resin prices” said a PE market analyst . Recent resin price increases “have all been driven by exports, but now [exports] are starting to taper off, so we might be at the top of the market.”

However, several buyers said domestic demand improved from April to May to June 2009.

This year’s price increases – as well as an 8-cent move announced for July 1 that has been changed to 4 cents for July 1 and 4 cents for Aug. 1 – have not sat well with many PE buyers. Many buyers complain the increases of 2009 “haven’t been justified.”

“If you look at oil and gas ratios, there’s no reason prices should have gone up,” one said. “A lot of processors still haven’t recovered from the 20 months of increases or flat prices in 2007 and 2008 … (more)
Plastics Business News July 2009

Polyethylene suppliers have been successful in implementing the additional $.03/lb resin increase which was announced effective June 1st, 2009. This is in addition to the $.03/lb increase that was implemented May 1, 2009. The continued weakening of the U.S. dollar, strong export demand, and increasing energy (oil) prices continue to support this escalation. Based on the June 1, 2009 resin price increase, Sigma Stretch Film will increase prices by 5% on all orders received on or after July 13, 2009. (more)
U.S. Stretch Film Producer June 2009

Summer temperatures are rising across North America – and commodity resin prices are doing the same. PE prices have increased an average of 13 cents per pound since January. Analysts attributed the PE hike to market tightness caused by export sales. Crude oil prices also are up recently, but most North American PE is based on natural gas, where prices have been volatile … (more)
Trade Reports July 2009