Just some news to share:
Polyolefin markets continue upward
Rising raw material costs have led prime resin makers to higher prices for plastics. For most of 2010, they have been successful. This has allowed recycled plastics producers to also move prices higher, although market conditions vary among the polyolefins.
PE: Resin makers ended 2009 on a flat note when a recommended December price increase of nearly five cents per pound went nowhere. Producers then wanted as much as eight cents per pound more in January, and tight supplies in North America, Europe and China eventually meant that many converters were forced to pay more. Prices went up by about four cents per pound in mid-January. Then, a sharp rise in ethylene prices, at the end of the month, led to resin producers announcing pricing would go upward again.
Producers sought an additional eight cents per pound in February, saying they were being aided by previous cutbacks in monomer and polymer production capacity, higher imports, tight supplies and rising ethylene costs. As a result, this large price increase stuck and, in March, prices went up six cents more, followed now by a five-cent increase quoted for April shipments. Ethylene production snafus added to market tension, with about 15 percent of North American capacity being offline in the first quarter.
PP: The market picture for propylene in the first quarter mirrored that for PE. Resin makers sought about five cents per pound more in January, which was attained due to low supplies. Producers then wanted six to eight cents more in February because of higher monomer costs, and were able to attain this increase. This was followed by a five- cent boost in March. Analysts say, however, that further price movement will be restricted by weakening resin demand, especially from the automotive and appliance sectors.
Cited by: plastics recycling update newsletter
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