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A second PE supplier has offered a PE contract price reduction, while spot prices tumble as available supply swells.
Falling global feedstock costs and demand destruction concerns are forcing prices downward.
One major PE player is offering the first reduction on PE contract prices in two years. Will others see fit to do the same?
It now appears feasible that PE prices will remain flat for a while with perhaps some potential for decline.
Upward pressure on prices comes from production disruptions and higher feedstock costs.
Prices of PP, PS drop as PE, PVC are flat or softening. Ditto for ABS, PC, and nylon 6 and 66.
Good news for buyers of PE, PP, PS, and PVC..
The second quarter started with higher prices for PE, PS, PVC, and ABS, but PP was down a bit.
Plentiful shale gas promises to keep domestic polyolefin production costs among the lowest in the world. Whether (and when) you will see savings is debatable.
Polyolefin prices appear to have bottomed out, with flat-to-upward pricing expected, while PS and PVC prices are likely to flatten. Prices of ABS, PC, and nylons are soft and going nowhere in the near future.
Polypropylene prices have dropped significantly and may have hit bottom, while PE prices flattened out and face downward pressure from increased supplier inventories, lower feedstock prices, and soft demand.
Polyethylene and PVC prices moved up, while PP and PS prices were headed down by the end of the first quarter and into April.
Prices of four commodity thermoplastics rose in late January and early February, and new increases were announced for this month in PP, PE, and PVC.
Higher prices are projected for PE, PP, PS, and PVC in this first quarter, driven by tighter availability and/or higher costs of feedstocks.
Lower feedstock costs, ample material availability, and overall sluggish demand has driven prices down for the four commodity thermoplastics.
A sharp decline in U.S. energy prices and tabs for all key feedstocks, along with dismal-to-lackluster domestic and global demand, have brought significantly more attractive pricing for the four commodity thermoplastics and downward movement for four high-volume engineering resins.
Further price erosion is projected for at least this month, particularly in the case of polyolefins and polystyrene.
Combination of slowed global demand, build-up in resin suppliers’ inventories, and projected drops in feedstock prices are expected to provide some price relief at least through the second quarter.
Prices of commodity resins all moved up in the first quarter.
After falling almost continuously through the second half of 2011, prices of PE, PS, and PVC were all on the way up last month, with PE prices already rebounding by the end of December.