Resin Update for June 2020
Earlier this month Dow announced a new increase of $.05 per pound effective July 1st. This is in addition to the current $.04 increase that was pending for June 1st. Very quickly thereafter, all the other resin manufacturers followed suit and announced their own $.05 July 1st increases.
CDI indicated that the $.04 increase for June will hold as export and domestic polyethylene demand remains extremely strong for June, inventories are low, and prices have risen already for both export and spot materials. . Unplanned shutdowns with a few producers also contributed to tight supply of several grades over the past few weeks, and this could continue in the coming months due to scheduled plant maintenance/turnarounds.
As the economy reopens, companies are looking to restock inventories. Food, health, Lawn & Garden, and E-Commerce markets continue to take the lead in demand as some are seeing levels 100% above forecast, particularly in the single use packaging segments, as safety concerns overtake environmental concerns among consumers.
Although it is too early to tell whether the July $.05/lb. increase will go into effect, based on all the market drivers it certainly does seem that the market has seen the bottom for the near future and we should anticipate an upward trajectory.
Please contact your Poly Pak representative to see how these latest market conditions effect your particular needs.
We at Poly Pak wish everyone good health during these uncertain times.
As always thank you for your business!!!!