Resin Update
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LLDPE Resin Pricing
Resin Update for January 15, 2011
The first week of the New Year was quite a roller coaster as the market tried to figure out what resin prices were for December. Much to everyone’s surprise resin producers managed to push through a $.05 December increase in the end.
The last week in December CDI posted their index numbers as flat for the month and all seemed to be as expected until the first week in January when CMAI came out with their report showing $.03/lb up for the month. Within a couple of days CMAI revised their numbers to reflect a $.05/lb increase. The industry was in turmoil as processors tried to understand what was going on and why the disparity between the two indices.
After a few days CDI then issued a “mid-month” update to their original report stating that a majority of buyers and sellers indicated that the market had indeed implemented a $.05/lb price increase.
There is another $.06/lb on the table for January. Producers are determined not to give up any margin here in the first quarter and conditions seem right for another increase. There were inventory draw downs in December, feedstock prices are rising, and export opportunities are opening up again.
Please contact your Poly Pak Sales Representative with specific questions about your requirements and how the current market conditions may affect you.
We appreciate your business and wish you a happy, healthy, and prosperous 2012.
