LLDPE Resin Pricing
Resin Price Update for October 2017
Resin price increase announcements have been confusing due to varying effective dates so the outlook for October contract pricing is still unclear, only a few suppliers have announced an October 15th $0.03/lb. increase and one announced a $.04/lb. increase for November 1st. What is clear is that the indices confirmed a $0.03/LB. increase in August, and $0.02/LB. increase for September. The $.02/LB increase posted for September was a calculation used based on the fact that not all producers announced for September and some of them only beginning mid-month.
Resin supply availability problems are beginning to settle down a bit. Most force majeures were lifted towards the end of September. Some producers are still under sales allocation. LLDPE grades are still very tight. IHS estimates the production loss from Hurricane Harvey during September at approximately 700 million pounds.
Dow, ExxonMobil, and Chevron have successfully started up their new polyethylene plants and are now delivering prime pellets although this has not yet had an impact on the shortages resulting from Harvey.
Please contact your PolyPak America representative at toll-free number 800-826-4000 to see how these market conditions may affect your specific requirements.
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