The freefall in Polyethylene prices has abated, but prices still continue to edge lower. Delivered prices of Generic Prime Polyethylene resin have begun to consolidate near $.50/lb, with premiums of course for certain grades, while some widespec is offered down into the $.40s. Upstream, Natural Gas prices were mildly lower this week and spot Ethylene was quiet, where prices have stabilized in the low 30s.
We are still finding spot Polyethylene widely available, but offered prices vary more widely than usual depending on the producer and grade. While producers generally continue to make well-priced resin available, they have now provided their first signal that the inventory liquidation sale may soon be coming to an end.
Several major Polyethylene producers have issued price increase letters, indicating their intention to raise their resin prices by $.06/lb starting December 1st. While it is nearly unprecedented for a fresh price increase to grab hold in December, come January after a long period of industry wide destocking, the market might be ripe for the increase to become implemented. |
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