5 Key Insights Influencing Resin Market Pricing in March

Welcome to a new edition of the GAP Polymers Newsletter, where we delve into the dynamic world of resin market pricing.

In this edition, we uncover 5 key insights that are shaping the pricing landscape and driving market trends.

From strong demand driving active resin trading to pricing challenges and contract demand, we explore the factors influencing the market. So, let's gain valuable insights:        

1- Strong demand has fueled active resin trading?

The PlasticsExchange reports that the week of March 4 witnessed a very active resin trading pace. The main reason is the strong demand.

While the flow of off-grade polyethylene (PE) and polypropylene (PP) railcars was relatively light, resellers offered some of their forecasted prime cars into the PlasticsExchange's marketplace.

Asking prices increased, but transactional levels remained mostly steady.

Prime PE and PP grades stayed flat across the board at the resin clearinghouse.

2- Spot Market Rush and Price Increase Projections

According to plastics today, Buyers rushed to the spot market as they faced another monthly PP cost-push price increase.

?PE producers are eyeing price increases of at least $0.03/lb, while PP producers aim to expand their production margins by raising March contracts by $0.02 to $0.03/lb beyond the pending increase in polymer-grade propylene (PGP) monomer costs.

3- PE Trading Activity and Off-Grade PE Pricing

PE trading activity showcased another strong performance, with a notable mix of railcar and truckload transactions.

LLDPE film emerged as the leading mover for the second consecutive week, followed by HDPE for blow molding and injection.

LDPE remained less prominent. Off-grade PE prices stayed firm, with suppliers raising railcar asking prices by around $0.03/lb over late-February levels.?

4- PP Trading and Force Majeure Declarations

PP trading experienced a solid week, with homo-polymer slightly outselling copolymer PP.?

Similar to PE, off-grade sales exceeded prime as buyers sought better opportunities than contract levels.

?5- Pricing Challenges and Contract Demand

PP prices at the PlasticsExchange remain flat despite spot PGP monomer prices easing by $0.015/lb during the past week.

The availability of attractively priced resin became increasingly challenging as older and cheaper warehoused reseller materials were mostly picked over.

Contact us today to know more about prices!

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