The spot resin markets were mixed this past week. Fresh domestic railcar offers were very limited, and those cars that were available were marked higher, generally reflecting the full November increases sought. High volume domestic demand was equally absent from the market, as processors still appear comfortable with their resin stocks, many having bought extra cars during late October to hedge against higher November price nominations.
For those processors that were in need of spot resin, distributors and resellers were eager to fill the supply void this week with competitively priced inventoried resin. Our reseller volumes have been strong so far in November, for both domestic and export sales.
Resin producers are pressured by expensive and volatile energy and feedstock costs and have nominated steep price increases for November contracts to restore better margins and provide a buffer against other potential short-term spikes in costs.
Polyethylene producers have raised contract prices by $.05/lb as of Nov 1, with another $.06/lb nominated for Nov 15; however, it is still to be seen whether even the first nickel will remain intact throughout the month.
Polypropylene producers seek to raise contract prices by as much as $.08/lb or whatever the market will bear in November. Although Nov PGP prices have yet to settle, given the spot RGP market's strength since the Oct contract settlement, there will be the need to pass though sharply higher feedstock costs.
Crude Oil prices moved $.39/bbl higher this past week, to close at $96.32/bbl on Friday. After a sharp run approaching $100, there was some consolidation this week. Natural Gas prices have come under pressure, falling just over $.50/mmBtu this week to settle around $7.90/mmBtu, which is a nice recovery from Thursday's $7.50 low.
Monomer prices came off a bit more this week as players anticipate production units to return back on-stream and supplies to increase. Spot Ethylene traded under $.50/lb several times this week, with the most recent deal done at $.49375, which is where it was offered at Friday's close. While the restart of two crackers has been delayed a few days, the return of the Flint Hills (formerly Huntsman) cracker earlier this month seems to have satisfied the market's anxiety. Still, overall Ethylene supplies remain tight and Ethane, the feedstock to Ethylene, is at an historically high price of $1.07/gal.
Propylene prices have stopped their supply-constrained tear higher. While RGP prices have eased a tad from record highs, Crude Oil priced near $100/bbl and Propane trading at $1.59/gal, do justify an elevated RPG price, although not quite to this level. While ExxonMobil's FCC did restart on Thursday, monomer supplies remain tight and the market remains vulnerable to other potential refinery hiccups. Still, it is anticipated that Propylene prices could ease as more refinery capacity returns to normal production.
For those processors that were in need of spot resin, distributors and resellers were eager to fill the supply void this week with competitively priced inventoried resin. Our reseller volumes have been strong so far in November, for both domestic and export sales.
Resin producers are pressured by expensive and volatile energy and feedstock costs and have nominated steep price increases for November contracts to restore better margins and provide a buffer against other potential short-term spikes in costs.
Polyethylene producers have raised contract prices by $.05/lb as of Nov 1, with another $.06/lb nominated for Nov 15; however, it is still to be seen whether even the first nickel will remain intact throughout the month.
Polypropylene producers seek to raise contract prices by as much as $.08/lb or whatever the market will bear in November. Although Nov PGP prices have yet to settle, given the spot RGP market's strength since the Oct contract settlement, there will be the need to pass though sharply higher feedstock costs.
Crude Oil prices moved $.39/bbl higher this past week, to close at $96.32/bbl on Friday. After a sharp run approaching $100, there was some consolidation this week. Natural Gas prices have come under pressure, falling just over $.50/mmBtu this week to settle around $7.90/mmBtu, which is a nice recovery from Thursday's $7.50 low.
Monomer prices came off a bit more this week as players anticipate production units to return back on-stream and supplies to increase. Spot Ethylene traded under $.50/lb several times this week, with the most recent deal done at $.49375, which is where it was offered at Friday's close. While the restart of two crackers has been delayed a few days, the return of the Flint Hills (formerly Huntsman) cracker earlier this month seems to have satisfied the market's anxiety. Still, overall Ethylene supplies remain tight and Ethane, the feedstock to Ethylene, is at an historically high price of $1.07/gal.
Propylene prices have stopped their supply-constrained tear higher. While RGP prices have eased a tad from record highs, Crude Oil priced near $100/bbl and Propane trading at $1.59/gal, do justify an elevated RPG price, although not quite to this level. While ExxonMobil's FCC did restart on Thursday, monomer supplies remain tight and the market remains vulnerable to other potential refinery hiccups. Still, it is anticipated that Propylene prices could ease as more refinery capacity returns to normal production.
