Page 48 - Plastic News November 2023

BUSINESS NEWS

Resin Price Report: Producers Looking for Third Straight PE Price Hike
cord sizable back-to-back inventory
draws. The balanced-to-tight supply/
demand conditions have encouraged
producers to seek another 3-cent
price increase for October. Mean-
while, Nova and CP Chem remain on
a force majeure, though CP Chem re-
cently restarted it’s previously offline
high-density PE unit in Texas. Bay-
star’s newly commissioned PE unit
in Texas will also bring more supply
into the market and should improve
overall availability. Shell’s Prime pro-
duction, however, has been inconsist-
ent, and much of the industry’s new
P contracts also are set for an- lose a little of its upward momentum
Pother price increase, which is now when prices came off their highs ear- production in recent years has been
targeting around $0.06/lb. lier in the month. Producers report- geared toward the export market.
The solid October start downshift- edly remain steadfast in their effort to PP trading started the week slowly
ed last week, as spot resin trading implement a third straight $0.03/lb PE but finished strong. Activity increased
slowed, reports the PlasticsExchange price increase, while PP contracts will mid-week when the price of polymer-
in its Market Update. Polyethylene endure another monomer-led price grade propylene (PGP) jumped as
(PE) prices were steady to a penny hike, which is now targeting around buyers sought to secure more spot
higher, while polypropylene (PP) $0.06/lb. material ahead of the imminent Oc-
jumped $0.02/lb, reflecting rising Some PE resin prices edge higher tober contract price increase, which
monomer costs. Interest remained The PE market remained firm, and began growing in magnitude. Some
strong, but deals were harder to com- while transacted volumes pulled back suppliers were pleased to sell into the
plete and transacted volumes at the from the high levels seen during the better buying behavior, while others
PlasticsExchange trading desk slipped first half of the month, some prices pulled their packaged offers and scat-
back toward the levels seen in the still edged higher. Demand improved tered.
earlier part of the year. for low-density PE, both film and in- Prime PP resin adds another $0.02/lb
Processors pull back jection grades, each of which picked increase
There was a lot more quoting than up a half-cent. High-density PE, which Off-grade railcars continued to flow
trading, and it seemed that some pro- mostly saw steady pricing, was the and were bid up. Prime PP railcars
cessors were just taking the tempera- flavor of the week. Blow molding ma- were somewhat difficult to procure.
ture of market conditions, writes the terial was the biggest mover, accord- Producers have throttled back pro-
PlasticsExchange. Demand for pack- ing to the PlasticsExchange, and high- duction, so availability has been tight-
aged truckloads outpaced railcars. molecular-weight PE for film gained a er, and while fresh cars can be made
This came after a previous surge in de- penny, reflecting snug supplies. to order, the margin over monomer
mand, including some precautionary PE availability poised to improve has been expanding. By the end of the
buying following the Hamas terrorist Overall exports still remain very good week, Prime PP prices had added an-
attack against Israel and the potential and continue to support the market, other $0.02/lb, bringing current levels
for the conflict to expand regionally. though incremental demand has eased to $0.08/lb above the July low, reports
Though volatile crude oil prices have and buyers have pushed back a bit the PlasticsExchange.
remained elevated, keeping upward against rising prices. Producers mod- The resin clearinghouse said it main-
cost-push pressure on international erated PE reactor rates in September tains the bullish stance it has held
resins, the export market seemed to amid continued heavy exports to re- since the summer.

48 PLASTICS NEWSASTICS NEWS November 2023
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