LLDPE Resin Pricing
Resin Update for April 2017
The March nominated resin increase of $.06/lb. was only partially implemented this month. Due to tremendous resistance from processors, there was a disparity between price indices early in the settling process. Amongst the fray, some resin suppliers came out with a revised increase letter formally splitting the previous announcement. The end results being PE prices firmly up $.03/lb. for March with the other $.03/lb. on the table for April making current PE prices the highest pricing seen since December of 2014.
Implementation of the remaining $.03/lb. the increase during April may prove difficult. Although industry statistics for March are not yet available, market feedback suggests that while domestic demand remained firm in March, export volumes appear to have weakened as demand around the world is lack luster.
Oil prices along with export and secondary market activities will be the strongest market indicators to watch this coming month. Oil prices which were approaching $56/bbl. during the last full week of February fell by approximately 13% to about $48.50 by mid-March before rebounding a bit at month end. Export opportunities to Asia have softened due to rising inventories caused by weakened demand along with the falling crude prices.
Please contact your Poly PAK representative to see how these market conditions may affect your specific requirements
Thank you for your business!