The domestic spot resin markets saw limited activity during the first half of November. Producers, feeling the pressure of expensive energy and higher contract monomer costs, have restricted spot resin availability as they work to implement their steep price increases for November resin contracts.
Polyethylene producers have priced November contract sales $.05/lb higher since Nov 1. They have another $.06/lb slated for Nov 15 and have recently added an additional $.05/lb increase for Dec 15. Polypropylene producers seek to implement an $.08/lb increase for Nov contracts with another $.05/lb nominated for Dec 1.
Processors, well aware of these ensuing price increases, have had ample time to build hefty inventories during October and have thus far avoided substantial spot purchases at these higher levels. However, now that we have crossed mid-month and producers have yet to budge on domestic pricing, paying up (at least something) for November Polyethylene contract purchases is starting to look unavoidable. Nov Polypropylene contracts will no doubt settle higher.
The export markets have provided good underlying demand, but many of such possible transactions have been stymied by higher asking prices by producers earlier in the month. Other exporters, many of whom had accumulated large inventories, took advantage of the supply void and gladly sold off resin stocks at modestly higher prices over Oct levels. Fresh producer export offers have now eased from initial Nov levels, while trader's bids have also ticked a little higher.
The export market has now come back together to begin re-opening active trade. European demand is helped along by a weak US dollar priced around $1.4675/Euro, just off all times lows. South American buyers can handle the market price, but volumes have been smaller. The Asian market has begun to awaken and interest has been shown, but the price still does not work.
Crude Oil prices began this past week under considerable pressure, reaching a low barely above $90/bbl on Tuesday. The market then rallied sharply, with the expiring December futures contract erasing most of the week's losses, closing at $95.12/bbl on Friday, down only $1/bbl for the week. Natural Gas futures added about a dime this week to close at $8/mmBtu on Friday.
Spot Ethylene prices popped back above $.50/lb early in the week. Spot RGP prices continue to ease slightly, but are still within a couple of cents of the record levels seen a couple of weeks ago. November PGP contracts settled $.0725/lb higher to $.615/lb, while spot PGP, which is relatively thinly traded, has now come off $.02/lb trading at $.59/lb this week.
Polyethylene producers have priced November contract sales $.05/lb higher since Nov 1. They have another $.06/lb slated for Nov 15 and have recently added an additional $.05/lb increase for Dec 15. Polypropylene producers seek to implement an $.08/lb increase for Nov contracts with another $.05/lb nominated for Dec 1.
Processors, well aware of these ensuing price increases, have had ample time to build hefty inventories during October and have thus far avoided substantial spot purchases at these higher levels. However, now that we have crossed mid-month and producers have yet to budge on domestic pricing, paying up (at least something) for November Polyethylene contract purchases is starting to look unavoidable. Nov Polypropylene contracts will no doubt settle higher.
The export markets have provided good underlying demand, but many of such possible transactions have been stymied by higher asking prices by producers earlier in the month. Other exporters, many of whom had accumulated large inventories, took advantage of the supply void and gladly sold off resin stocks at modestly higher prices over Oct levels. Fresh producer export offers have now eased from initial Nov levels, while trader's bids have also ticked a little higher.
The export market has now come back together to begin re-opening active trade. European demand is helped along by a weak US dollar priced around $1.4675/Euro, just off all times lows. South American buyers can handle the market price, but volumes have been smaller. The Asian market has begun to awaken and interest has been shown, but the price still does not work.
Crude Oil prices began this past week under considerable pressure, reaching a low barely above $90/bbl on Tuesday. The market then rallied sharply, with the expiring December futures contract erasing most of the week's losses, closing at $95.12/bbl on Friday, down only $1/bbl for the week. Natural Gas futures added about a dime this week to close at $8/mmBtu on Friday.
Spot Ethylene prices popped back above $.50/lb early in the week. Spot RGP prices continue to ease slightly, but are still within a couple of cents of the record levels seen a couple of weeks ago. November PGP contracts settled $.0725/lb higher to $.615/lb, while spot PGP, which is relatively thinly traded, has now come off $.02/lb trading at $.59/lb this week.
