Market Update & Summary Jan 24th 2012:

CDI report this month goes into some detail on why the December $.05 increase ultimately ended up holding and why they got it wrong.  They are “estimating” no change in pricing for January, but we have not confirmed a flat month from any of our resin suppliers. We will provide an updates as soon as I have more information.

 

Market Update & Summary Jan 20th 2012:

Resin suppliers to the stretch film industry are implementing the previously announced December 1 increase. They are also strongly indicating there could be additional increases first quarter 2012; one has already been announced for January 1. Rising feedstock costs are given as the primary reason for the increases.
US Stretch Film Producer December 2011

 

Polyethylene Resin Price Increase Effective January 1, 2012 - Effective January 1, 2012, The Dow Chemical Company (Dow) will increase the selling price of all polyethylene resins in the United States by US$0.07/lb. This increase is in addition to all previously announced price increases.

 

Market Update & Summary Dec 13th, 2011:

LLDPE: Escalation in resin price

Polyethylene market firmed; supplies are tighter and prices jumped $.02/lb.

A fourth consecutive month of scaled-back Polyethylene production, actually to the lowest since Feb 2009, has helped producers liquidate about 500 million pounds of inventory since they peaked in July. For the first time in a year, upstream PE inventories have dipped below 3 billion pounds. Houston traders have also reduced inventory.

 

Market Update & Summary Dec 5th, 2011:

 

Market Update & Summary Now 15th, 2011:

Polyethylene prices were steady this past week, despite producers’ repeated attempt to secure a $.05/lb price increase (7th monthly try). $.03/lb and $.05/lb reductions were seen for October PE contracts, but a nickel was more common. Offers were limited this past week and generally quoted up the nickel with the caveat that the price would be adjusted if the increase did not hold. TRADE REPORTS NOVEMBER 2011

 

November 11, 2011 - Due to unexpected operational difficulties, The Dow Chemical Company is unable to supply select grades of linear low density polyethylene (LLDPE) resins produced at our St. Charles Operations facility.

 

 

Market Update & Summary Now 2nd, 2011:

Polyethylene prices were generally steady to $.01/lb firmer and have now recovered $.01 -.02/lb from earlier lows. Some market strength was seen this past week when producers took a firm stand at $.03/lb, resisting the call by processors to lower October Polyethylene contracts by $.05/lb. To further support their position, producers reiterated their intent to implement a $.05/lb price increase in November (attempt #7) and a further $.06c/lb in December.

TRADE ANALYST NOVEMBER 2011 

 

Market Update & Summary Oct 25th, 2011:

Monthly Petrochemical and Plastics Analysis

LLDPE RESINS:

October CDI down 5 c/lb as expected. There are several reason why PE resin sales orders and production levels in October and November are expected to be well below those in September. First, weaker economic activity both here and with our trading partners is drying up PE resin demand. Second, there is a seasonal soft period for PE resin that has been experienced for many years now. It is possibly the industry seeing an early jump on this fourth quarter seasonal demand softness that is typical for the industry. Next, China is seeing resin demand implode as a a result of their own softer domestic economic activity and the inability to export during the upcoming fourth quarter holiday season. .

Trade Report October 2011

 

Market Update & Summary Oct 11th, 2011:

 

Market Update & Summary Sept 15th, 2011:

As you probably know, the chemical (resin) manufacturers have two increases on the table as we speak and have had for the past couple months.  I would expect to see the rest of the industry follow with similar letters in the coming day(s).  Lead times are very reasonable now, but inventories levels across the entire channel are low and it won't take much to push them out.  Look at your inventory positions and be thinking about what you might need.

AEP price Increase letter for October 2011

Sigma price increase letter for October 2011

Amtopp price increase letter for October 2011

Intertape price increase letter for October 2011

Market Update & Summary Sept 8th, 2011:

Spot Polyethylene prices were steady into month-end and then jumped a penny at the beginning of September. The uptick essentially recovered the penny lost in the previous week and was logical given the new month and yet another attempt to implement the same $.05/lb price increase floated since May. Weak international PE prices are challenging spot exports, which could again complicate the increase given relatively high inventories.

 

Market Update & Summary Sept 7th, 2011:

September resin pricing started steady to moderately higher. Industry expects new price increase attempt later this month.

U.S. ethylene facilities face annual maintenance downtime. Best advice for now, buy as needed but expect September film sales pick-up. Again, watch this space.
U.S. Stretch Film Producer September 2011

Resin markets ended August stronger as producers showed renewed intent to implement price increases. However, the market have since been fairly flat. In September, we expect PE producers to again try to enforce the same $.05/lb increase they have attempted all summer.
Resin Market Reports September 2011

 

Market Update & Summary Sept 1st, 2011:

Resin markets began August strong as producers sought to implement price increases. However, the market then wavered, giving back the gains as the increases fell by the wayside; prices have since been fairly flat. In September, we expect PE producers to again try to enforce the same $.05/lb increase they have attempted since May.

Resin Market Reports August 2011

 

Market Update & Summary Aug 31st, 2011:

August resin pricing remains steady to moderately higher.

Industry expectations indicatea new price increase attempt in September.

ANTICIPATE ETHELYNE FACILITIES DOWNTIME (due to annual scheduled plant shutdowns). 

Best advicefor now, buy only as needed but expect traditional film sales pick-up next month.

Again, watch this space.
U.S. Stretch Film Producer August 2011

 

Market Update & Summary Aug 23rd, 2011:

The spot Polyethylene market gave back the previous week's gains as average prices slid $.01-.02/lb. Despite producers' repeated efforts to implement the August $.05/lb price increase, resin buyers have again balked given the weaker energy and feedstock markets. Although producer inventories continued to swell, to the highest level in three years, offers remain relatively light. The flow of spot material could begin to increase again as lower Crude Oil prices have weakened international resin prices, complicating spot Polyethylene exports.

August PE contracts could wind up steady, bucking the previous 2 months of decreases – while also fading the 4th attempt to implement the $.05/lb price increase.
Trade Analyst August 2011

Market Update & Summary Aug 19th, 2011:

Polyethylene: Despite producers' repeated efforts to implement the August $.05/lb price increase, resin buyers have again balked given the weaker energy and feedstock markets. Although producer inventories continued to swell, to the highest level in three years, offers remain relatively light.

The flow of material could begin to increase again as lower Crude Oil prices have weakened international resin prices, complicating PE exports.

August PE prices could wind up steady, bucking the previous 2 months of decreases – while also fading is the 4th attempt to implement the $.05/lb price increase.
Trade Analyst August 2011

 

Market Update & Summary Aug 3rd, 2011:

LLDPE stretch film resin bottoms out. PE pricing trekking higher going into August. Inventory build at distributor level set to begin.
Trade Analyst August 2011

Polyethylene pricing is now poised to recover somewhat in August. Regarding that pesky $.05/lb price increase...well, perhaps the 4th time will be a charm. Adding to the upward pressure, a fresh $.06/lb increase has also been nominated for September. PE producers are seeking a nickel (again), and some producers would like to eek out a little extra margin, resin contracts will likely be steady to a few cents higher.
Trade Analysis August 2011

Resin News: Dow up on price gains. Dow Chemical Company reported that it achieved sales of $16.0 billion in the second quarter of 2011, the second highest quarter in the Company's history. Sales increased 18 percent, driven by price gains of 17 percent compared with the same period last year. Sales increased 28 percent, with double-digit gains in all operating segments and all geographic areas. Dow is firmly on the right strategic path of sustained earnings growth.
Trade News August 2011

The resin markets are in flux. Given the current level of July and August Ethylene, we would expect to see Ethylene's July NTP marked higher. Continued strength in the export market has provided a good outlet for surplus materials and has lifted the floor price in Houston. The PE market could very well have already found a bottom. If so, expect producers to make a valiant effort to finally implement (some of) the $.05/lb price increase in August. Pricing power may very well be transitioning back into producers' hands, we will see if this trend continues. If so, it could mean an end to recent contract price relief and perhaps higher prices again in August.
Resin Analyst August 2011

 

Market Update & Summary July 26th, 2011:

The resin markets are in flux; although July contract prices are falling, spot is strong and prices have already turned back higher. Much of the discount that had been prevalent in the spot market has been eliminated. There was a pretty good flow of material seen this past week and despite the higher prices, a relatively high number of transactions were still driven to conclusion. For the second month in a row, Polyethylene processors staved off a $.05/lb price increase and instead will see average contracts marked down $.03-.04/lb, depending on producer and product. July Polypropylene contracts are following PGP $.04/lb lower.

Market Update & Summary July 22nd, 2011:

Domestic spot Polyethylene prices were steady to lower, although notable gains were seen in the previously sharply-discounted export market. Continued recovery in the Indian and Asian regions cleared a good deal of surplus inventories. Latin American buyers are turning back to North American suppliers for added material as competitive offers from aforementioned regions have dwindled. While domestic PE railcar offerings were somewhat limited.

 

Market Update & Summary July 6th, 2011:

Spot resin offers were heavy and prices continued to drop as the second quarter came to a close. For the second week in a row, spot Polyethylene prices fell $.01-.03/lb depending on grade and Polypropylene shed another $.02/lb. Decreases were seen for commodity resin contracts in June; Polyethylene was mostly $.02 - .04/lb lower, although some buyers were pushing for a larger decrease. Polypropylene contracts fell $.15/lb commensurate with the change in June PGP contracts.

US energy prices rebounded ahead of the long holiday weekend. August Crude Oil futures rose $3.78/bbl to settle at $94.94/bbl on Friday. After several weeks of lower prices, August Natural Gas futures bounced back a modest $.061/mmBtu to end the week at $4.311/mmBtu. The Crude Oil: Nat Gas price ratio moved back out past 22:1.

 

Market Update & Summary June15th, 2011:

It did not take long into June for the second attempt to implement the $.05/lb Polyethylene price increase to fizzle out. Not all producers have completely conceded the increase, but prospects are looking dim. Polyethylene market was under pressure with prices falling as much as $.02/lb this past week. Slacking demand from both the domestic and export markets led to bulging producer inventories which helped stifle the $.05/lb increase effort in May and now again in June.
Resin Market Analyst June 2011

 

Market Update & Summary June7th, 2011:

To all Syfan USA's customers: Effective Monday, June 20, 2011, Syfan will implement an 8% price increase on all SYTEC Shrink Films.
* The increase will apply to all orders placed on or after Monday 06/20/2011.
* All orders placed by Friday 6/17/11 must be marked for immediate shipments and will be honored at current price levels.
As you are all aware, we continue to experience significant increases in raw material costs.
Unfortunately, Syfan can no longer absorb the continued increases.

 

Market Update & Summary June 6th, 2011:

Datamax-O'Neil Printer Supplies Price Increase  

Effective July 5th, 2011

Datamax-O'Neil continues to receive numerous notifications from raw material suppliers regarding increases in the cost of paper, synthetics, adhesives, silicone, and film products as well as other material resources used to manufacture our products. Contributing factors include:

• Shortage of raw materials such as PET Polyester and adhesive components
• Increased paper costs complicated by rising global demand
• Supplier rationalization
• Decreased supplier manufacturing capacity

As a result, Datamax-O'Neil is forced to increase prices from 3 to 5 percent on paper, synthetics, adhesives, silicone, and film products. The new prices become effective on July 5 th, 2011 .

 

Market Update & Summary June 1st, 2011:

LLDPE Resin: Prospects for June gloom

PE producers have not completely postponed their $.05/lb increase.

Resin trading picked up as the month drew to a close.

Ethylene prices were slightly higher. After implementing a total of $.11/lb of increases so far in 2011, producers pushed for another nickel but came up short, although not all producers have conceded at this point. Buyers en large were able to resist the May increase, but producers will have another go at it in June. PE producers have not completely postponed their $.05/lb increase.
Trade Analyst June 2011

LLDPE: Stretch Resin Seen Rising. U.S. resin producers have issued an array of June price increase initiatives to add support to their price increase efforts.
Trade Analyst June 2011

 

Market Update & Summary May 25th, 2011:

Polyethylene producers are having difficulty implementing their current $.05/lb increase. Producers remain adamant to enforce the full increase, but it seems they might need to try again in June. PE buyers have resisted the May $.05/lb increase and would call steady contract prices a win. Resin exports to regions other than Latin America have not provided additional demand for either PE. U.S. resin sales volumes have been lighter in May.
Trade Reports May 2011

LLDPE Resin markets have stabilized putting a question mark over the May (5c/lb) price increase announced in the U.S.  Resin producers continue to aggressively seek the increase and have issued a number of June increase initiatives to add support to their efforts.
Trade Analyst May 2011

Several grades of polyethylene resin remain under tight supply conditions and the manufacturers have announced a subsequent increase for June which we will monitor closely.

Please note that due to limited resin availability and extended lead times we will strictly limit our customer's orders. (AEP) (Sigma) (Pinnacle) (AmTopp) (Berry)
US Stretch Film Producer May 2011

 

Market Update & Summary May 18th, 2011:

LLDPE Resin producers continue to aggressively seek the May price increase

and have issued an array of June price increase initiatives to add support to their efforts.
Trade Analyst May 2011

LLDPE Resin markets have stabilized putting a question mark over the May (5c/lb) price increase announced in the U.S.  Resin producers continue to aggressively seek the increase and have issued a number of June increase initiatives to add support to their efforts.
TRADE ANALYST MAY 2011

Several grades of polyethylene resin remain under tight supply conditions and the manufacturers have announced a subsequent increase for June which we will monitor closely.

Based on the May 1st PE increase as well as additional delivery cost increases We will implement an 8% increase for all grades of film effective with all orders placed on or after May 23, 2011.

Please note that due to limited resin availability and extended lead times we will strictly limit our customer's orders.
US Stretch Film Producer May 2011

The huge drop in energy prices last week have not worked their way down stream, as feedstock markets were mostly flat and resin prices were steady to higher. Resin demand has been stifled by rising resin costs and many processors complain of their inability to pass along the increases. We suggest a tone of caution with regard to purchases beyond May consumption, the energy and other commodity markets have just shown how quickly a volatile market could change direction.
Trade Analyst May 2011

 

Market Update & Summary May 9th, 2011:

Commodities Plunge for a Fifth Consecutive Day Extending the biggest rout since December 2008, as investors cut their holdings in oil, silver and industrial metals amid concern that economic growth will slow.
The Standard & Poor's GSCI Index of 24 raw materials fell as much as 3.6 percent to 658.93 points, and was at 672.25 as of 10:20 a.m. in London.

Crude oil fell as much as 5.2 percent to $94.63 a barrel in New York trading and natural gas rose 0.1 percent to $4.266 per million British thermal units..
Business News May 2011

 

Market Update & Summary May 3rd, 2011:

LLDPE: Stretch Film Resin Today

For the second week in a row, average spot Polyethylene prices rallied about $.01/lb, with some grades, this time LLDPE, posting stronger gains. The $.06/lb price increase took hold early in the month for most processors and it now appears to be fully implemented industry-wide. There is another $.05/lb increase nominated for May contracts and a newly issued increase of $.04/lb seen floated for June.

Commodity resin prices rose sharply in April and could move higher again in May as resin producers look to pass along their rising energy and feedstock costs. Domestic demand could suffer at these stratospheric price levels, as processors look to buy only as needed. The domestic market is not yet providing signals that a price break is around the corner.
Trade Reporter May 2011

 

Market Update & Summary April 29th, 2011:

Spot resin market activity slowed a tad from the fervent pace seen during the first half of the month. Resin prices resumed their upward trek amid light spot offerings and still rising energy and feedstock costs. Polyethylene buyers are confirming a $.06/lb rise in April contracts while most PP buyers have endured a $.15/lb jump. Upward pressure remains as producers will seek to lift commodity resin prices again in May.

Up, up and away…resin prices continue to rally with no apparent end in sight. The huge disparity between the price of Natural Gas and Crude Oil has had a significant impact on the market.

 

Market Update & Summary March 25th, 2011:

LLDPE stretch film... New increase set for April 11th. U.S. film producers getting in line behind fresh hike attempt

Domestic resin companies behind the price rises.
Packaging News Analysis March 2011

Polyethylene prices higher and availability has diminished.   

Resin producers finally secured part of the increase they have been pushing since December. With $.03/lb now achieved, they are seeking in March the $.02/lb balance plus an extra $.06/lb that was already on the table. To add strength to this effort, a $.05/lb price increase has been issued for April.
Trade Analyst March 2011

DOW Chemical Company - Polyethylene Resin Price Increase Effective April 1, 2011 (copy of letter)

Sigma Stretch price increase letter for orders placed on or after April 11, 2011 (copy of letter)

________________________________________________________________________________________________________________________________________

Market Update & Summary March 11th, 2011:

After a slow start to the month, spot resin trading improved as buyers and sellers began to come together on price. Polyethylene railcar offers relaxed from the initial $.08/lb pop seen in the previous week; buyers were clearly shocked by the jump and withheld orders awaiting better prices. After finally achieving a $.03/lb price increase in Feb, PE producers are realistically seeking to add another $.02/lb in March, reserving the $.06/lb also nominated pending potential major market disruptions.

 

Market Update & Summary March 8th, 2011:

Polyethylene prices were higher and availability has diminished. Resin producers finally secured part of the  increase they have been pushing since December. With $.03/lb now achievedt, they are seeking in March the $.02/lb balance plus an extra $.06/lb that was already on the table. To add strength to this effort, a $.05/lb price increase has been issued for April.

Trade Analyst March 2011

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Market Update & Summary March 4th, 2011:

 

Thanks to Mideast unrest. Resin processors gave their best effort to avoid price increases in February, and while PP has ended flat, PE producers are still standing their ground with a $.03/lb increase. Whether or not some sticks, PE producers will go after an increase again in March. Spot export markets were a little more active with better demand seen from Latin America and Europe.

All film film processors have announced a 5% - 7% increase on all orders entered after March 9 th 2011.

Copy of Increase Letters.

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Dow closing two PVC resin plants

Dow Chemical Co. is closing a pair of U.S. plants that account for almost 10 percent of North America’s capacity to make vinyl chloride monomer, a key feedstock for PVC resin.

The firm will close a VCM unit in Oyster Creek, Texas. Dow previously had announced it would close a similar unit in Plaquemine, La.

Combined, the plants account for 9.5 percent of North American VCM capacity and more than two percent of the global total, according to CMAI.

Trade News Reports February 2011

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Plastic Packaging Market Will Reach $180 Billion in 2011

Plastic is a vital material which is inextricably linked to economic development. As emerging economies grow, demand for plastic packaging will increase, strengthening the market for this vital commodity.

As the global plastic packaging market adapts to regional shifts on the demand and supply side, the future of the industry will look very different, allowing for growth opportunities. In Asia, traditional plastic packaging applications will dominate growth, although the dominance of this region promises to affect significant changes in the global demand structure, providing interesting opportunities for major players within the plastic packaging industry.

Plastic Packaging a great business to be in.

Trade Reports March 2011

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PF, (International Trade Group) has warned that the major increases in plastics raw material prices experienced by processors will lead inevitably to further increases in the price of plastics products. It pointed out that raw material purchases can represent as much as 60% of the selling price of plastics products.

"All product sectors, be they plastics building products for construction and infrastructure projects, packaging for food distribution or technical components for the automotive and aerospace industries, have been hit and desperately need to pass the increases on to maintain viability," said the Federation.

"Some grades of polyethylene and polypropylene have increased by 70% and 80% respectively since January 2009. In the last year alone Polypropylene registered a 40% increase. Similarly, polystyrene prices have almost doubled since January 2009 and some PVC grades are 40% higher.

International Trade Reports February 2011

 

Market Update & Summary Feb 24th, 2011:

Polyethylene prices were higher with major commodity grades LLDPE Butene adding $.015/lb. Several PE producers split the current $.05/lb increase to $.03/lb for Feb and $.02/lb for March. Trading intensified as rising spot Ethylene prices gave support to the Feb increase initiative.

CHEM DATA REPORT (CDI)

OUT FOR FEBRUARY

REPORTING PE RESIN PRICING FLAT - NO CHANGE
Trade Sources February 2011

 

Market Update & Summary Feb 17th, 2011:

Steel Strapping: Steel strapping is on the move in March 2011 by 10%

Copy of Increase Letter

 

Market Update & Summary Feb 4th, 2011:

Polyethylene: trading was busy again; prices were slightly higher depending on grade. Availability was good with a number of suppliers looking to deal before month-end (January). There was also a fair amount of packaged resin offered in Houston warehouses.

Demand was good and a number of deals came together at prices that were mostly steady for the month.

Expect more of the same this month with most recent increase (LLDPE) pushed out until EOM February.

Shrink Film : Looks like all the shrink film producers are on the move up with pricing.

Copy of Increase Letters

PET Strapping: Due to recent price increases from our suppliers of our raw materials, Maillis Strapping Systems finds it necessary to announce an increase of 7% to your current polyester strapping prices. The increase will go into effect on February 15, 2011. We will not be able to accept orders above your normal ordering patterns at current pricing.

Copy of letter.

Packaging Tape: Last December, Intertape Polymer Group® (IPG) announced a price adjustment effective February 15, 2011. Since the time of announcing our price adjustment, raw materials have further increased significantly without warning. Polypropylene alone increased approximately 25% in the month of January, with further increases forecasted for February. IPG has no choice but to pass these increases on and adjust our February 15th increase accordingly.

Copy of IPG Letter