Until this past week, the feedstock and resin market rallies had stalled and they began to give back some of their previous gains. Then Tropical Storm Humberto suddenly gained hurricane status on Thursday as it made landfall along the Petrochemical rich Texas/Louisiana region. While damage was not reported to be extensive, some production has been disrupted. This helped drive energy markets sharply higher and potentially derail the recent anticipated trend of softening Olefins and Polyolefins prices.
During the past 6 weeks, spot RGP prices had receded about $.04/lb and spot Ethylene gave back about $.02/lb. Post-Humberto, spot prices popped a bit with the last Ethylene trade at $.475/lb and the most recent RGP trade recorded at $.46/lb. Spot resin prices have eased a little from their highs, but were mostly steady this week. While most of the resin producers have postponed their September price increase efforts, some have yet to dismiss, and they would still all remain on table for future implementation.
Crude Oil prices powered another $2.40/bbl higher this past week to close at $79.10/bbl on Friday, decently off the all-time record price of $80.36/bbl that was made earlier in the session. Natural Gas prices were also extremely volatile, with multiple swings of nearly 10%. Prices this past week ultimately gained nearly $.80/mmBtu to settle at $6.279/mmBtu on Friday.
Resin buyers, uninspired by the inclement Gulf weather last week, have dug in to their position, resisting the September price increases and are still looking for relief ahead. Spot resin prices have indeed begun to come off and the bearish sentiment has a good grip, however, further (weather related) Petrochemical production disruptions and a strong resurgence in export demand could still send the resin markets higher again.
During the past 6 weeks, spot RGP prices had receded about $.04/lb and spot Ethylene gave back about $.02/lb. Post-Humberto, spot prices popped a bit with the last Ethylene trade at $.475/lb and the most recent RGP trade recorded at $.46/lb. Spot resin prices have eased a little from their highs, but were mostly steady this week. While most of the resin producers have postponed their September price increase efforts, some have yet to dismiss, and they would still all remain on table for future implementation.
Crude Oil prices powered another $2.40/bbl higher this past week to close at $79.10/bbl on Friday, decently off the all-time record price of $80.36/bbl that was made earlier in the session. Natural Gas prices were also extremely volatile, with multiple swings of nearly 10%. Prices this past week ultimately gained nearly $.80/mmBtu to settle at $6.279/mmBtu on Friday.
Resin buyers, uninspired by the inclement Gulf weather last week, have dug in to their position, resisting the September price increases and are still looking for relief ahead. Spot resin prices have indeed begun to come off and the bearish sentiment has a good grip, however, further (weather related) Petrochemical production disruptions and a strong resurgence in export demand could still send the resin markets higher again.
