Contract polyethylene prices settled flat in October as resin producers pushed the pending five-cent contract price increase out until November.
In a surprising move, early this month, polyethylene suppliers have already announced they are pushing out the November $.05/lb. price increase implementation until December 1st. The early month announcement is a significant sign of weakness based mainly on the stability of global price drivers.
We expect to see stable prices for the remainder of 2016 although price increase nominations will likely remain on the table so that resin producers have one in place should an opportunity like unplanned outages, or weather related issues presents itself.
Oil prices are the major driver for PE prices right now. As long as they stay below $60 a barrel we should not see any increase in resin prices. Current 2016 oil published forecasts range from the low to high $50 per barrel for 2016.
If you have any questions in regards to current market conditions, please contact your PolyPAK representative.
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