Volume: Average
Price: Steady
The spot Polypropylene market saw limited activity this past week; there was a normal flow of resin, both generic prime and good offgrade. After squeaking out another margin saving $.02/lb price increase in August, there is another $.03/lb price increase nominated for September. The market however, seems to be vulnerable to at least a modest break in prices, so buyers are apprehensive to make any purchases above and beyond their current needs.
The accompanying daily Polypropylene chart shows a very accurate representation of the spot market, but it does not necessarily show the entire picture. Most Polypropylene producers had actually raised their generic prime prices a few cents during August, only to come back off as the month wore on. However, our Generic Prime market was mostly steady for the entire month. This was due to a constant, albeit light flow of Generic Prime Homopolymer offerings that have been available in the low $60s/lb, with Copolymer railcars priced a couple cents premium.
Rising feedstock costs have pushed the Polypropylene market higher all year, with only a couple of short-term retracements. While domestic demand has been disappointing, strong export demand has been sufficient to offset the shortfall and help keep overall supply and demand in relative balance. With little force to move the resin market out of equilibrium, Polypropylene prices have been more or less pegged to monomer. Now that we are past the peak of seasonal refined product demand, upward pressure on Propylene prices has subsided.
RGP prices have fallen about $.03/lb since the beginning of August. August RGP contracts had settled at $.48375/lb. September contracts were heard to have started settling near the level of the last confirmed trade for the spot market of $.455/lb. So if the trend of Polypropylene contracts following monomer contracts is maintained, we believe resin contracts should settle lower in September.
Price: Steady
The spot Polypropylene market saw limited activity this past week; there was a normal flow of resin, both generic prime and good offgrade. After squeaking out another margin saving $.02/lb price increase in August, there is another $.03/lb price increase nominated for September. The market however, seems to be vulnerable to at least a modest break in prices, so buyers are apprehensive to make any purchases above and beyond their current needs.
The accompanying daily Polypropylene chart shows a very accurate representation of the spot market, but it does not necessarily show the entire picture. Most Polypropylene producers had actually raised their generic prime prices a few cents during August, only to come back off as the month wore on. However, our Generic Prime market was mostly steady for the entire month. This was due to a constant, albeit light flow of Generic Prime Homopolymer offerings that have been available in the low $60s/lb, with Copolymer railcars priced a couple cents premium.
Rising feedstock costs have pushed the Polypropylene market higher all year, with only a couple of short-term retracements. While domestic demand has been disappointing, strong export demand has been sufficient to offset the shortfall and help keep overall supply and demand in relative balance. With little force to move the resin market out of equilibrium, Polypropylene prices have been more or less pegged to monomer. Now that we are past the peak of seasonal refined product demand, upward pressure on Propylene prices has subsided.
RGP prices have fallen about $.03/lb since the beginning of August. August RGP contracts had settled at $.48375/lb. September contracts were heard to have started settling near the level of the last confirmed trade for the spot market of $.455/lb. So if the trend of Polypropylene contracts following monomer contracts is maintained, we believe resin contracts should settle lower in September.
