Energy and crude oil hits record highs. Expect film demand to pick up as Q3 progresses and distribution completes de-stocking efforts. Costs for raw material, freight and energy remain high and rising.
Polyethylene. Prices are now poised to move (possibly much) higher as the market gains momentum. We are now seeing signs of a potentially bullish imbalance between supply and demand developing and particularly in the international market. The Plastics Exchange
Oil prices settle at new record. Crude sets new closing high as refinery shutdowns leave the market on edge amid robust demand. Adding to concerns was news of a pipe bomb attack in Venezuela. Additional disruptions could come from an unusually active Atlantic hurricane season. Prices have rallied more than 40 percent this year. CNN Money, August 2005
Get a better wrap
PE prices are on the rebound. Price relief for processors in the first half of 2005 appears to have been short-lived. PE prices moving back up. Polyethylene prices are poised to rise. Suppliers aimed to implement last month the 6¢ hike on Aug.1. A surge in domestic and export demand, and disruptions in monomer and polymer production, are expected to support higher PE prices. In addition, Chinese buyers are back in the export market.
Plastics Technology Magazine
Resin makers fight price erosion. Chemical feedstock prices have declined across the board. But that hasn't stopped polyolefin producers from announcing price increases, however inhospitable the climate would appear to be.
Plastics Technology.com
LME September Prices: LLDPE $1100/tonne.
PRW.com, August 2005
Prices for PE, PP resin rising again. Buyers of polyethylene and polypropylene better fasten their seatbelts, since after six months of prices going down, they’re headed back up again.
Plastics News, August 2005
Compared to prices a year ago, average prices for truck transportation service increased by 6% and 5.7% in April and May, respectively. Average trucking prices are now forecast to increase 4.7% in 2005, followed by a 4% annual price hike in 2006. Logistics Management
The oil system, both upstream and downstream, is being run close to sustainable limits, and the tensions created by the absence of slack are now the key driver of prices. The profusion of recent snags in the US refining system even suggests that, over time, the system is being pushed beyond its sustainable limits and, hence, that interruptions are becoming more likely.
Oil & Gas Journal Online
Looming energy cost hikes threaten packaging profits. Analysts have suggested that it is just a matter of time before energy prices increase further, bringing more bad news to plastic packaging manufacturers who are finding it increasingly difficult to absorb rising costs. The root of problem is that the cost of natural gas and petroleum, the starting point for the production of many types of packaging resins, has increased consistently over the past 12 months.
Food Production Daily.com
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