Aug 26, 2014 | Uncategorized
In my previous update I told you about resin increases scheduled for July 1st and August 1st. It’s safe to say at this point those increases did not take hold. However, there is now a 3-cent increase on the table for September 1st.
It’s still too early to tell what the outcome will be, but The Plastics Exchange has taken the position that “spot conditions and supply side fundamentals certainly support the initiative.” As always, I will update you again as I know more.
If you have any questions about this update or anything else at all, please let us know. Thank you allowing us to serve your packaging needs.
Jul 18, 2014 | Uncategorized
In my previous post I told you about a resin increase of 3 to 6 cents per pound scheduled for June 1st. Now that June has come and gone, it’s safe to say that increase never took hold.
Increases for July 1st and August 1st were then put on the table. As we move to the end of July the picture is still not completely clear, but it does look like a July increase will settle in. The odds of this were strengthened by some recent events in the petrochem industry. Plastics News has reported major polyethylene suppliers “have declared force majeur production limits on that material after incidents at their Texas plants — including a July 7 fire that injured two workers at a Chevron Phillips ethylene/propylene unit in Port Arthur.”
Plastics News also added: “No timetable has been set for restart of the area affected by the incident,” and that the situations “could tighten supply in a North American PE market where demand has been lackluster so far in 2014.”
As time goes on, I will know more about the situation and update you accordingly.
If you have any questions about this update or anything else at all, please let us know. Thank you for your continued business, and we look forward to serving you.
Jun 4, 2014 | Uncategorized
The polyethylene market has been experiencing some stressful times over the last number of months. It is no secret that resin producers would love to add in more price increases. In fact, there are announced increases for June 1st and July 1st.
Some producers are holding back, others are pressing forward. As a consequence of the market uncertainty, it is likely that we won’t be able to say what the outcome of the June 1st price increase will be until July 1st. If it does indeed go through, it is possible that we will have to put the increase through in the early part of July. I anticipate that a possible June 1st increase will amount to 3% to 6% on our pricing, but I will have to update you again as July approaches.
If you have any questions or concerns, please call one of our customer service representatives at (800) 272-2634 or send us an email.
Mar 27, 2014 | Uncategorized
2013 was a year that saw three substantial increases in the price of polyethylene resin. Going into 2014, many probably hoped for a breather, but along came another increase (on top of the 2013 increases) of another 4 cents per pound. Additionally, resin producers announced intentions of raising prices again on April 1 by another 6 cents per pound.
I’ve seen that many processors and converters have come out with increase announcements for their products as a result. We are all pretty much in the same boat. Raw material is raw material and, like the price of gasoline at the pump, there is little that can be done to resist it.
Right now we’ve seen the need to pass along prior increases through the March 2014 events. As for the April increase, we don’t really know for sure whether that will take hold or not. I have hopes that it won’t. According The Plastics Exchange, “PE contracts should manage steady in March and while it is still very early, we do not see how the market could take the $.06/lb increase nominated for April.” I would tend to agree with him and hope that market realities will hold things in check at this time.
If you have any questions about this update, or if there’s anything else we can do for you, please let us know. Thank you for your continued business, and we look forward to serving you.
Jan 21, 2014 | Uncategorized
A resin increase of about 6% flowed through back in October, and since then things have been level despite other increase announcements through the end of the year and into January. Pricing in January was also level.
There is a 4-1/2% increase in resin pricing set for February, and due to the tightness on the supply end and the high level of activity in the spot markets, there is a fairly good chance that the February increase will stick. Further information on this will settle in by mid February, and we should have an update at that time.
As for lead times on products, things are fairly busy and usage planning is helpful to us in assuring that we meet your needs.
If there’s anything we can do for you at this time, please call one of our customer service representatives at (800) 272-2634 or send us an email. We look forward to serving you throughout this new year and beyond.
Sep 16, 2013 | Uncategorized
In my last update, I told you resin suppliers were attempting to push through a 4-cent increase for August. That increase did not go through, and now suppliers are talking about 5-cent increases for both September and October.
From The Plastics Exchange‘s latest update:
“The resin markets just quietly eased into September. Spot prices, which have been advancing, took a small step back while participants look to evaluate their 30-60 day resin needs. … While it is way too early to call, given the upward momentum in the spot market, some of the increase could potentially take hold.”
It’s hard to predict if those 5-cent increases will indeed go through considering how flat pricing has been the past few months, but if you check your current inventory levels and find you need to replenish your stock, it might not be a bad time to do so.
As always, if you have any questions or concerns, please call one of our customer service representatives at (800) 272-2634 or send us an email.
