Volume: Growing
Price: Steady
Spot Polypropylene prices moved a tad lower this past week, as good offgrade railcars became lost in a sea of Generic Prime offerings. Not all railcar offers were fresh from producers, but also came from traders that had made purchase commitments earlier in the month. While domestic demand has improved, it was apparently not enough to move all that has been available. Some of these offers might soon seem to be a deal, as producers, concerned about the potential for higher monomer costs ahead, have re-issued their intentions to raise prices for October resin contracts.
Spot Propylene monomer prices were expected to ease into the 4th quarter as refinery issues were to continue resolving. Refiners however, were again forced to shut down some capacity as Hurricane Humberto came through the region. With the price of Crude oil at record levels, refiners are getting squeezed and they will do their best to pass along higher costs downstream to the monomer and resin markets.
While RGP prices have firmed, stopping the slide and rallying a couple cents to around $.47/lb, they have not at all kept up with the rise in Propane, its feedstock. Propane prices have increased about 15%, from $1.16/gal to $1.34/gal in just the past month alone.
Polypropylene has been a difficult trade. Resin buyers have been expecting a better break in prices than the market has afforded. Some have continually come to the market to buy resin at prices that have just not been available. Those that have had little staying power have ordered fresh cars at the best available price, while others that have waited too long have actually paid up for spot loads to keep them going.
We have seen good consolidation in spot Polypropylene prices, both domestic and export. Export sales through traders remains challenging, although large volumes are passing offshore direct from producers through their major channels. There is a price increase nominated for October resin contracts and we feel that the Polypropylene market will continue to take direction from Propylene monomer contracts. Current talk is for a $.01/lb increase, but it is still early.
Price: Steady
Spot Polypropylene prices moved a tad lower this past week, as good offgrade railcars became lost in a sea of Generic Prime offerings. Not all railcar offers were fresh from producers, but also came from traders that had made purchase commitments earlier in the month. While domestic demand has improved, it was apparently not enough to move all that has been available. Some of these offers might soon seem to be a deal, as producers, concerned about the potential for higher monomer costs ahead, have re-issued their intentions to raise prices for October resin contracts.
Spot Propylene monomer prices were expected to ease into the 4th quarter as refinery issues were to continue resolving. Refiners however, were again forced to shut down some capacity as Hurricane Humberto came through the region. With the price of Crude oil at record levels, refiners are getting squeezed and they will do their best to pass along higher costs downstream to the monomer and resin markets.
While RGP prices have firmed, stopping the slide and rallying a couple cents to around $.47/lb, they have not at all kept up with the rise in Propane, its feedstock. Propane prices have increased about 15%, from $1.16/gal to $1.34/gal in just the past month alone.
Polypropylene has been a difficult trade. Resin buyers have been expecting a better break in prices than the market has afforded. Some have continually come to the market to buy resin at prices that have just not been available. Those that have had little staying power have ordered fresh cars at the best available price, while others that have waited too long have actually paid up for spot loads to keep them going.
We have seen good consolidation in spot Polypropylene prices, both domestic and export. Export sales through traders remains challenging, although large volumes are passing offshore direct from producers through their major channels. There is a price increase nominated for October resin contracts and we feel that the Polypropylene market will continue to take direction from Propylene monomer contracts. Current talk is for a $.01/lb increase, but it is still early.
