LLDPE Resin Pricing
Resin Update for April 2018
Contract resin prices settled flat for March as most polyethylene producers finally relented and decided to push the pending $.03/lb. price increase out to April. The flat March settlement comes on the heels of the February implementation of a $.04/lb. increase.
We are being told to expect to see product-specific contract price movements develop in the near future as a large percentage of the new domestic production of resin is targeted to the export markets. More highly exported items like HI Density and Butene will likely be more susceptible to global pricing factors than the more specialized products sold predominantly in North America.
The key drivers that likely worked against implementation of the proposed March increase include declining polyethylene prices in China during the month of about $.01-$.02/lb. depending on the grade, buyer expectations that domestic polyethylene prices were at or near peak levels, and spot ethylene prices falling by as much as $.06/lb. compared to February levels.
Resin producers are expected to push hard for higher contract prices in April but they will likely encounter many of the same obstacles that surfaced in March especially in light of the fact that Chevron, Exxon and Dow are all ramping up their new capacity.
Please contact your Poly PAK representative to see how these market conditions may affect your specific requirements.
Thank you for your business