![]() ![]() ![]() PP Copolymer remained in hot demand, especially high flow and No Break resins. Polypropylene trading was fine, but paled to the more active PE market. ![]() There have been several named storms so far, but none that have threatened the Gulf forecasters are still predicting a very active Hurricane season ahead. Producers have nominated a nickel increase for August contracts, and the increase could have made sense if the $.03/lb decrease would have officially gone through in either June or July, but contracts still sit up $.03/lb for the year while spot prices have sagged. The spot discount to contracts is very wide and provides excellent sourcing opportunities to savvy buyers – just give our trading desk a call to tap our liquid spot market. A couple of major indices rolled their prices flat again for July, while unofficial discounts / non-market adjustments pile up adding confusion to domestic pricing. The export market has remained hot with strong buying seen from Asia, LatAm and Europe producers have raised August Houston asking prices by $.03-.05/lb and supplies are snug. The market for offgrade PE railcars has been firming low-ball bidders have been disappointed as the bottom of the market has cleaned up several cents. LLDPE for Film and Injection also changed hands in our domestic and export markets and more would have transacted if additional well-priced prompt offers were available. We sold several railcars of HDPE Blow Mold export and some prompt Injection grade truckloads were completed in the domestic market. Traders scooped up several railcars of Film grade LDPE on the final day of July, and our business accelerated when August began on Tuesday. Polyethylene trading was solid, a nice volume of resin transacted across our marketplace and average prices held steady with a firm undertone. Based on limited spot availability, it seems that both Polyethylene and Polypropylene producers maintained their reduced reactor rates through July while exporting surplus supplies. Prime railcar offerings improved somewhat to begin the month as several resellers offered parts of their forecasted August supply into the spot market to augment their company’s direct sales. Widespec availability remained relatively tight and the bottom part of the pricing spectrum continued to shore up. Still others, including resellers, bought to replenish depleted inventories. Demand was very good as some processors sought to satisfy their typical needs early in the month, while others bought packaged truckloads to fill in supply gaps due to late railcars. However, the market has been erratic during 2023, with several short-term demand surges ceding back to slow periods, we will see if this one gains momentum. Completed volumes were nicely above average as bearish sentiment has melted away and we might already be peeking past neutral towards mildly bullish. Summary The resin markets reversed course from its tepid activity as our marketplace began August with one of the most active weeks of the year. ![]()
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