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LLDPE RESIN GOING UP. Polyethylene prices
rallied this week and overall supplies
remain limited. Resin producers successfully
implemented their $.08/lb price increase
in February. With Ethylene monomer costs
continuing to rise, they now have their
sights set on enforcing a $.06/lb increase
for March - a $.05/lb increase has also
been announced for April.
Trade News Reports March 2010
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BEAT HIGH STRETCH PRICES |
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HYBRiD80 STRETCH FILMS |
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Western Plastics line of economy
'green solution' stretch films in
hand rolls, machine rolls and narrow
widths |
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Subject: Price Increase Announcement. Please see
attached Stretch Film price increase announcement
effective with orders placed on or after March 29,
2010. The price increase is for 7% or $.07 lb. In
addition, the resin manufacturers have announced
a 5th price increase of $.05 lb effective April
1, 2010. It is too early to tell if this increase
has any chance of going through. Of course, a couple
weeks ago I didn't think the increase we are announcing
for the end of March had any chance of going through
so I am done giving professional opinions. All new
orders received after March 29 will be priced at
a 7% increase. Based on the current product lead-times
and shortness of resin supply.
U.S. Stretch Film Producer March 2010
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All new orders received after March 29th will be
priced at a 7% increase. Based on the current product
lead-times and shortness of resin supply, Sigma
can only accept new orders at current pricing for
FLOOR STOCK sku’s which have a ship date prior to
April 10th. New orders for made-to-order, custom
and P/L sku’s may NOT meet this lead-time and will
be subject immediately to the 7% increase. Check
with your local plant location.
U.S. Stretch Film Producer March 2010
MARCH ETHYLENE SUPPLY ALERT There is a serious concern
regarding the limited amount of ethylene available
in March. Several systems do not have ethylene to
sell to polyethylene producers. The reduced ethylene
availability is due to planned turn arounds and
unplanned outages. This is not a demand driven supply
concern, however, the recovery timeline is not certain.
This situation may result in a cutback in polyethylene
production. Suppliers will not be able to buy ethylene
for production. The ethylene that is available will
cost too much, versus the selling price of PE. Strong demand
in December and January due to exports, early January
re-stocking and end of January pre-buying contributed
to low supplier inventories.
Resin Market Alert March 2010
Polyethylene prices rallied $.05/lb this past week
amid soaring feedstock costs and some Force Majeure
conditions in both Ethylene and Polyethylene. With
spot Ethylene prices jumping at least $.10/lb, Polyethylene
producers will clearly be firm in their effort to
enforce the full $.06/lb price increase they previously
nominated for March contracts. This is on top of
the $.12/lb increases successfully implemented between
Jan/Feb. Another $.05/lb has already been floated
for April. We see the Polyethylene market very firm
right now and unless something drastically changes,
expect most if not all of the current $.06/lb price
increase to become implemented for March.
Trade Analysis March 2010
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Subject: Updated resin/ethylene
information
We have shared over the past month concerns
for resin/ethylene supplies as we get
into mid March. It appears these concerns
are coming to fruition as outlined by
the above letters. Sigma Stretch Film
has planned as best we can for this
potential challenge. We currently have
sufficient resin supplies, good finished
goods inventory and we are running all
our lines to support your efforts! Due
to the recent increase announcements
our lead times are approximately 2-4
weeks depending on the product. Please
keep this in mind as you monitor both
your customers needs as well as your
stock. Short term flexibility could
be impacted if your customers do not
properly plan their needs.
U.S. Stretch Film Producer March
2010
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Date: Mon, 1 Mar 2010 07:55:36
-0800
Subject: The Dow Chemical Company
- Polyethylene Price Notification Effective April
1, 2010 US.
RE: Polyethylene Resin Price Increase Effective
April 1, 2010. Effective April 1, 2010, or as otherwise
allowed by contract, The Dow Chemical Company (TDCC)
will increase the selling price of all polyethylene
resins in the United States by US$0.05/lb. This
price increase is in addition to all previously
announced increases.
Read the DOW
announcement
Read the Nova
announcement
Read the
Westlake announcement
U.S. Resin (LLDPE) Producer March 2010
Polyethylene prices rallied $.05/lb this past week
amid soaring feedstock costs and some Force Majeure
conditions in both Ethylene and Polyethylene. With
Ethylene prices jumping at least $.10/lb, Polyethylene
producers will clearly be firm in their effort to
enforce the full $.06/lb price increase they previously
announced for March. This is on top of the $.12/lb
increases successfully implemented earlier in the
Q1/10.
Trade Reporter March 2010
Price rises will be passed to film customers - PAFA.
Flexible film packaging prices are set to rise,
as increases in raw material costs can no longer
be absorbed by producers, says the Packaging and
Films Association. PAFA, the trade association representing
the plastic film and flexible packaging industry,
has issued the price warning to the customers of
its member companies because of a continuing upward
trend in polymer prices. It said there have been
"increases of up to 50% in low and high point price
differentials over the last twelve months for the
principal packaging polymers including LDPE, LLDPE,
PVC and PET".
International Trade News March 2010
Energy Price
Forecasts The Energy Information
Administration recently issued the following
price forecasts for various energy products
in 2010:
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Natural gas |
$4.62/mcf |
Gasoline |
$2.83/gallon |
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Coal |
$2.03/MMBtu |
Crude oil |
$77/barrel |
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Diesel fuel |
$2.96/gallon |
Heating oil |
$2.77/gallon |
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Please see attached Sigma price pages effective
with orders placed on or after 2/22/10. Due to heavy
order rate and extended lead times with our converted
film items, we cannot wait until 2/22/10 to implement
this price increase. Therefore, effective on all
orders for HPE and HPS placed 2/16/10, prices will
be increased by $.08 lb. This is in effect for all
plants US and Canada. Depending on plant location,
we are running 4-7 weeks for shipment.
U.S. LLDPE Stretch Film Producer
THE STAYING
POWER OF GREEN The resurgence
of the environmental movement has caused
an upswing in the demand for environmentally
friendly packaging, according to a new
report from the Foodservice Packaging
Institute. ( more...)
( See HYBRiD80
Stretch Films )
Packaging Business News
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Chevron Phillips March 1, 2010 Price Increase. Effective
March 1, 2010, Chevron Phillips Chemical Company
LP will increase the price of all polyethylene products
by six ($0.06) cents per pound. This increase is
in addition to the eight ($0.08) cent per pound
increase implemented February 1, 2010.
Read Chevron
Phillips Letter
Read Dow Letter
U.S. PE Resin Producer
Branding is
Everything You work hard to create
a unique image for your company - an
aura that encourages confidence - a
high level of name awareness that is
remembered and brings your customers
back for more. Now you can reinforce
that image with ... Private Label
Stretch Wrap. See examples ( more...)
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In 2009 and beyond, green is going to
not only be good, but likely essential,
for a product to be successfully marketed.
Read - Go Green with
HYBRiD80 Stretch Wraps
Packaging Journal Analyst
The call for source reduction packaging
has stoked demand for prestretched
films.
U.S. Stretch Film Producer
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Oil hovers over $80. Crude oil prices advanced for
a fifth straight session and rose slightly today,
hovering just over $80 a barrel, but gains were
tempered by a stronger dollar. Price rose 7.7% a
barrel on concerns over strikes at French refineries
and a report that showed a dip in U.S. inflation.
NATURAL GAS DROPPED TO 4.893 /BTU.
Business News Reports
An additional resin increase has been announced
to go into effect on March 1, 2010. The primary
drivers for this price increase are strong, continued
exports of polyethylene combined with rapidly escalating
prices of ethylene, the main building component
of polyethylene products. Ethylene prices are rising
due to ethylene production facility shutdowns, and
limited supply.
U.S. Stretch Film Producer
Thinner wrap...More
layers
In stretch film, the story is
the emergence of thinner-gauge films
that are just as strong as their thicker
counterparts. Demand for down gauged
films soars.
Read - Perform XL Film
U.S. Packaging Journal |
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