The commodity resin markets were slow this past week. With considerable price increases currently in play for September resin contracts, fresh producer supplies were sparse this first week of the month. Upward price momentum seems to have stalled along with the export market, which had provided such good support to domestic pricing in recent months.
Crude Oil prices continue to rebound, rallying another $2.66/bbl to close the week at $76.70/bbl, which is in striking distance of all time highs. Natural Gas prices also staged a rally early in the week, even piercing above $6/mmBtu, but then gave back almost all of their gains as October futures fell to $5.50/mmBtu by the market's close on Friday.
Spot Ethylene prices were mostly steady this week, trading either side of $.46/lb. The market has a slightly weak undertone, with 4th quarter prices expected to be a little lower than these levels. Spot Propylene prices continue to lose ground, but in a relaxed manner; RGP prices have now peeled back to mid-May levels near $.45/lb. While monomer prices are slipping, their feedstocks, Ethane and Propane, have actually maintained their strength, trading at or making new season's highs.
The US dollar has resumed its devaluation trend, with the current exchange rate against the Euro back to $1.38. This could help generate more surplus balancing export demand, which could re-tighten the domestic resin market. The first signs of good export demand have begun to resurface after the long August holiday break, but it might be too little and too late to aid producers in their effort towards with higher September resin contracts. Still export demand needs to be watched closely, a strong resurgence is capable of turning the resin markets higher again.
Crude Oil prices continue to rebound, rallying another $2.66/bbl to close the week at $76.70/bbl, which is in striking distance of all time highs. Natural Gas prices also staged a rally early in the week, even piercing above $6/mmBtu, but then gave back almost all of their gains as October futures fell to $5.50/mmBtu by the market's close on Friday.
Spot Ethylene prices were mostly steady this week, trading either side of $.46/lb. The market has a slightly weak undertone, with 4th quarter prices expected to be a little lower than these levels. Spot Propylene prices continue to lose ground, but in a relaxed manner; RGP prices have now peeled back to mid-May levels near $.45/lb. While monomer prices are slipping, their feedstocks, Ethane and Propane, have actually maintained their strength, trading at or making new season's highs.
The US dollar has resumed its devaluation trend, with the current exchange rate against the Euro back to $1.38. This could help generate more surplus balancing export demand, which could re-tighten the domestic resin market. The first signs of good export demand have begun to resurface after the long August holiday break, but it might be too little and too late to aid producers in their effort towards with higher September resin contracts. Still export demand needs to be watched closely, a strong resurgence is capable of turning the resin markets higher again.
