Resin Update
 |
LLDPE Resin Pricing
Resin Update for April 12, 2012
In March, resin producers were successful in securing the second half of the $.06 price increase announced for February. This was surprising as market indicators for March favored the processors. Domestic demand for resin was soft, inventories had a second consecutive month of gains, and there were limited export opportunities for resin producers.
There were many planned cracker maintenance outages in March creating an illusion of possible tightness in ethylene supply which could have resulted in higher spot pricing. In reality the spot price of ethylene in March remained almost identical to February.
We are still faced with a $.07 nomination for April. Resin demand in the US usually sees a boost in April. In the first week of April we have seen spot ethylene prices jump up. With multiple maintenance outages still remaining in April and potentially higher demand it is likely we could see prices push higher.
The good news is what goes up must come down and typically we see some price relief after the big spring push!
Please contact your PolyPak Representative with any questions.
Thank you for your business.
