Hurricane Dean stayed south avoiding America's key petrochemical infrastructure in the gulf area. This was a great relief to the energy markets, which had built in a weather premium during the previous week. The resin markets also reacted this past week by developing a slightly negative tone. Although the change was more in sentiment than price, the resin market might be entering a period of transition, away from still higher prices.
Natural Gas was the weakest of the energy group, losing an astonishing 20% as October futures prices fell $1.384/mmBtu to end the week at $5.739/mmBtu. October Crude Oil futures rebounded sharply from Wednesday's low of $68.63/bbl to close at $71.09 on Friday, still down for the week, but only $.73/bbl. September RBOB (gasoline) futures also recovered from mid week lows of $1.84/gal, but still ended the week down $.0574 to $1.9814/gal on Friday.
Contract Ethylene has initially settled $.01/lb higher to $.495/lb this past week. However, spot Ethylene prices were modestly lower, falling $.0025/lb to $.46/lb, although forward prices were decidedly weaker. There was a deal done for Ethylene at $.44/lb, with delivery spread over the next 4 months through December.
Spot RGP did not trade much this week and ended Friday at $.45 - .46/lb. This is off from last week's final trade of $.47/lb.; the spot monomer market is essentially down $.03/lb so far during August.
Export sales have slowed due to pricing issues. They are also currently challenged by limitations in physical containers and shipping constraints. As we enter the final week of the month we expect to see good domestic spot resin availability from producers looking to move surplus material that they have been unable to export. We will then look forward to the September price increases initiatives.
Natural Gas was the weakest of the energy group, losing an astonishing 20% as October futures prices fell $1.384/mmBtu to end the week at $5.739/mmBtu. October Crude Oil futures rebounded sharply from Wednesday's low of $68.63/bbl to close at $71.09 on Friday, still down for the week, but only $.73/bbl. September RBOB (gasoline) futures also recovered from mid week lows of $1.84/gal, but still ended the week down $.0574 to $1.9814/gal on Friday.
Contract Ethylene has initially settled $.01/lb higher to $.495/lb this past week. However, spot Ethylene prices were modestly lower, falling $.0025/lb to $.46/lb, although forward prices were decidedly weaker. There was a deal done for Ethylene at $.44/lb, with delivery spread over the next 4 months through December.
Spot RGP did not trade much this week and ended Friday at $.45 - .46/lb. This is off from last week's final trade of $.47/lb.; the spot monomer market is essentially down $.03/lb so far during August.
Export sales have slowed due to pricing issues. They are also currently challenged by limitations in physical containers and shipping constraints. As we enter the final week of the month we expect to see good domestic spot resin availability from producers looking to move surplus material that they have been unable to export. We will then look forward to the September price increases initiatives.
