Mar 27, 2014 | Uncategorized
2013 was a year that saw three substantial increases in the price of polyethylene resin. Going into 2014, many probably hoped for a breather, but along came another increase (on top of the 2013 increases) of another 4 cents per pound. Additionally, resin producers announced intentions of raising prices again on April 1 by another 6 cents per pound.
I’ve seen that many processors and converters have come out with increase announcements for their products as a result. We are all pretty much in the same boat. Raw material is raw material and, like the price of gasoline at the pump, there is little that can be done to resist it.
Right now we’ve seen the need to pass along prior increases through the March 2014 events. As for the April increase, we don’t really know for sure whether that will take hold or not. I have hopes that it won’t. According The Plastics Exchange, “PE contracts should manage steady in March and while it is still very early, we do not see how the market could take the $.06/lb increase nominated for April.” I would tend to agree with him and hope that market realities will hold things in check at this time.
If you have any questions about this update, or if there’s anything else we can do for you, please let us know. Thank you for your continued business, and we look forward to serving you.
Jan 21, 2014 | Uncategorized
A resin increase of about 6% flowed through back in October, and since then things have been level despite other increase announcements through the end of the year and into January. Pricing in January was also level.
There is a 4-1/2% increase in resin pricing set for February, and due to the tightness on the supply end and the high level of activity in the spot markets, there is a fairly good chance that the February increase will stick. Further information on this will settle in by mid February, and we should have an update at that time.
As for lead times on products, things are fairly busy and usage planning is helpful to us in assuring that we meet your needs.
If there’s anything we can do for you at this time, please call one of our customer service representatives at (800) 272-2634 or send us an email. We look forward to serving you throughout this new year and beyond.
Sep 16, 2013 | Uncategorized
In my last update, I told you resin suppliers were attempting to push through a 4-cent increase for August. That increase did not go through, and now suppliers are talking about 5-cent increases for both September and October.
From The Plastics Exchange‘s latest update:
“The resin markets just quietly eased into September. Spot prices, which have been advancing, took a small step back while participants look to evaluate their 30-60 day resin needs. … While it is way too early to call, given the upward momentum in the spot market, some of the increase could potentially take hold.”
It’s hard to predict if those 5-cent increases will indeed go through considering how flat pricing has been the past few months, but if you check your current inventory levels and find you need to replenish your stock, it might not be a bad time to do so.
As always, if you have any questions or concerns, please call one of our customer service representatives at (800) 272-2634 or send us an email.
Jul 31, 2013 | Uncategorized
Once again, as I anticipated they would, raw material prices remained flat for the month of July. And once again, resin suppliers are on board in August with the same 4-cent increase they’ve tried to push through over the past couple months. I can’t predict how the August increase attempt will pan out, but so far this summer it has been flat.
According to The Plastics Exchange,
“Spot commodity resin trading was again only about average. The quantity of completed transactions was off, but at least the volume per trade was larger than normal. Material availability for many resin grades continued to improve, largely due to spotty demand and the accumulation of unsold offers… As foreseen, July resin contracts rolled flat from June.”
After the sharp run-up of about 13% in raw materials pricing at the beginning of this year, the current price stability has been a welcome thing.
We’re experiencing strong volumes on our end and lead times are sometimes a challenge, but we’re staying on track in meeting customer needs on time.
If you have any questions or concerns, please call one of our customer service representatives at (800) 272-2634 or send us an email.
Jun 26, 2013 | Uncategorized
We’ve heard a constant drumbeat from resin suppliers for increases in raw material pricing each month of this year. Two have gone through—a 5-cent increase and a 4-cent increase.
For a couple months now, there has been an additional 4-cent increase in play. From what we have seen, it is still official, but implementation is another matter (so far as June contracts).
Here is a quote from The Plastics Exchange‘s Market Update:
“Spot Polyethylene prices were steady and it seems that June contracts could be flat for the third straight month, as production constrained supplies offset generally softer demand. When the final figures were tallied, May proved to be a strong sales month; domestic buyers purchased nearly 2.7 billion lbs of Polyethylene, 150 million lbs more than the 2013 YTD monthly average. Exports were also swift as nearly 750 million lbs were sent offshore, the most this year. Even though reactors ran at a solid 93% of nameplate capacity, producers were able to reduce their inventories by 250 million lbs, falling below 3.1 billion lbs for the first time since September 2012.”
From my reading, I see some resilient softness in the market as a whole. It may very well turn out that June pricing does end up to be flat…and that the increase will be tried again in July. For now, we’ll have to wait and see.
If you have any questions about resin pricing or anything else, please don’t hesitate to call us at (800) 272-2634 or send us an email. Thank you for your continued business.
