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PVC Film Price Increase Announcement dated
2/16/10. Please see the attached PVC Film
Price Increase Announcement. The attached
increase is effective with orders placed
Monday, March 8, 2010. Berry Plastics Corporation
(Pliant) appreciates the opportunity of
supplying you with your packaging film requirements
and thanks you for your business. We remain
committed to providing you with a combination
of quality, pricing, and service that represents
a best value to your organization. Do not
hesitate to contact your local Pliant Sales
Representative if you have any questions
regarding the price increase or its implementation
detail. Berry Plastics Corporation (Pliant),
PVC Films Division.
U.S. PVC Film Producer March 2010
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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. It
is important that you communicate resin requirements
with your supplier and confirm your specific resin
availability with your resin suppliers. 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
PVC resin suppliers have announced additional increases
for March based on plasticizer and feedstock availability.
These new increases make it necessary for Anchor
Packaging to increase prices on our PVC products
by 8% on Friday, March 26, 2010.
U.S. PVC Film Converter 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
The CDI for PVC Resin moved from .77 in January
to .82 in February. Therefore, pricing will increase
.05/lb on all rolls. This increase is effective
with shipments March 1, 2010.
U.S. PVC Film Converter
Due to continued escalation in raw materials, Reynolds
Food Packaging is announcing the following price
increase effective with normal stocking orders placed
beginning March 25, 2010. PVC film, including cutter
box and S.O.A.R. rolls 8%; Reynolds and all private
labels. All orders placed on or after March 25,
2010 will be at the new prices. All orders placed
before March 25, 2010 must request immediate shipment.
Order quantities will be limited to two weeks of
normal purchased volume.
U.S. PVC Film Converter
Walmart Sustainability
Packaging Expo: zero tolerance for greenwash
Preparing to exhibit for the fifth
consecutive year at Walmart’s annual
Sustainability Packaging Expo, packaging
suppliers have become increasingly savvy
in conveying their green messages.
That’s according to Robert Parvis, Sam’s
Club manager of House Brands Packaging,
who spoke with GreenerPackage.com, along
with Ronald Sasine, senior director
of Packaging, Private Brands for Walmart
Stores, about the retailer’s upcoming
event, scheduled for April 6-7 at the
John Q. Hammons Convention Center, in
Bentonville, AR.
“Their message is becoming more and
more focused,” Parvis says. “One of
the things we are really pushing is
clear communication, especially around
anything related to sustainability claims.”
Sasine agrees, “The packaging suppliers
are learning the language of Walmart,
and they are learning to engage and
discuss packaging with Walmart buyers
and merchants in a way that, in those
early years, was much more difficult
for them.” (more...)
Packaging News
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RESIN COMPANY REPORT - BASF was back into profit
in Q4, which the company puts down to improvements
in the global economy and its cost-saving measures.
The chemicals giant reported earnings of €455m from
October to December compared with a loss of €313m
for the same period in 2008. Demand for its products
grew in several key market areas including the automotive,
IT and electronics sectors. Asia as a geographical
market also showed growth. "We have shown that we
have the right strategy. We are therefore confident
that we will succeed in further strengthening BASF's
leading position," said Jürgen Hambrecht, BASF's
chief executive. "The slow recovery is continuing.
The fourth quarter of 2009 was encouraging and gives
us grounds for confidence. The worst is behind us,
even though dark clouds remain."
Trade Press Release
U.S. equities,
commodities and the dollar advanced
as U.S. economic and earnings reports
boosted optimism that the recovery from
the recession will be sustained.
( more...)
Business News
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Continued cost increases for resin, plasticizer,
and processing additives used to manufacture PVC
overwrap films, alone with increases in packaging
costs, make it necessary for LINPAC Packaging Filmco
Inc. to raise its prices by 8% effective March 22,
2010 on all PVC films (catering, specialty and meat
Film). This increase is in addition to our 8% increase
announced December 28, 2009. All orders will be
limited to normal order quantities for your specified
account. Orders exceeding this amount may be returned
to you for adjustment and could delay delivery.
U.S. PVC Film Producer
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 |
|
Coal |
$2.03/MMBtu |
Crude oil |
$77/barrel |
|
Diesel fuel |
$2.96/gallon |
Heating oil |
$2.77/gallon |
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Due to continued increases in raw material costs
along with pressure on ethylene availability, we
find it necessary to increase our film prices by
8% effective with orders entered on and after March
22, 2010. This increase will apply to In-Store Meat
& Produce films, as well as Laundry Wrap. Any orders
received time exceed average monthly usage will
not be allowed and will be returned.
U.S. PVC Meat 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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Oil prices continued to rise today as a refinery
strike in France and worries over Iran's nuclear
program suggested petroleum supplies may tighten
in the future. Benchmark crude added 32 cents to
$79.38 a barrel on the New York Mercantile Exchange.
Oil prices have increased more than 11 percent in
the past two weeks.
Business News
PVC US Price Increase effective 3/8/10. Attached
is our 8% PVC Price Increase letter. Here is a list
of market dynamics behind our announcement.
· PVC resin increased $.05/lb in January
· PVC resin is slated to increase $.05/lb in February
· PVC resin manufacturers have announced a third
nickel increase for March
· Plasticizers increasing %.05/lb
· Corrugated box pricing is also increasing
Trade Reports
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Due to continued increases in raw material
costs, we find it necessary to increase
our prices by 8% effective with orders entered
after January 29, 2010. This increase will
apply to Meat & Produce films, as well as
Laundry Wrap. Any orders received that exceed
normal monthly usage will not be allowed
and will be returned by our Customer Service
Department for modification before entry
into our system. There will not be exceptions
allowed to this usage limitation in order
for us to preserve inventory and not sustain
a major increase in our lead times.
U.S. PVC Film Producer
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Natural gas prices tumbled nearly 3 percent today
after the government said supplies are still higher
than average despite a rash of snowstorms that blanketed
the East Coast during the past few weeks. Natural
gas lost 13.5 cents to $5.251 per 1,000 cubic feet.
Natural gas is used to produce LLDPE Stretch Film
Resin in the U.S. Crude oil for March delivery added
$1 at $78.33 a barrel on the New York Mercantile
Exchange.
Trade Reports
PVC Prices Rise. Makers of PVC have won price increase
battles since Jan. 1. PVC prices are up an average
of 5 cents per pound in North America since Jan.
1, according to buyers. The 5-cent PVC move - coupled
with a similar attempt for Feb. 1 - has PVC buyers
on edge, since, historically, prices for that material
usually move up no more than 3 cents at a time.
But feedstock pressures from ethylene, along with
markets tightened by maintenance turnarounds and
increased export levels, are changing the rules
of the PVC game in early 2010.
Trade News
Subject: SABIC NEWS IN ASIA-NORTH AMERICAN EXPORTS
AND UPWARD PRICE PRESSURE
Polyethylene (PE) prices in the Asian market surged
yesterday as Saudi Basic Industries Corp. (SABIC),
the world??s largest PE exporter, announced 50%
reduction in supply to Asian clients with long-term
contracts in January and February, due to shutdown
of a number of its plants, a development which may
bring windfall to three domestic PE suppliers, Formosa
Plastics, USI Corp., and Asia Polymer Corp.
With prices of some PE items jumping 6.7% yesterday,
Formosa Plastics and USI suspended its quotes for
PE and EVA (ethylene vinyl acetate), apparently
in preparation for price hikes. Prices of PE derivatives,
including EG (ethylene glycol), PVC (polyvinyl chloride),
surged yesterday, which may jack up prices of an
extensive range of products which use such materials,
including plastic products.
International Plastics Reports
MOST POPULAR
MOST VISITED THIS WEEK
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In 2010, US energy prices, being at the top of the
petrochemical chain, will remain a major influence
on US and international resin prices. Crude Oil
ended the year on an up-tick with the February contract
settling at $79.36/bbl. Natural Gas prices eased
a bit the final week of 2009, as the February contract
shed about $.12/mmBtu to close the year at $5.572/mmBtu.
Ethylene prices remained in the $.37/lb range. The
spot resin markets will resume trading in a more
liquid manner over the coming weeks. We expect supply
to remain somewhat constrained as resin producers
seek to increase contract prices once again. Polyethylene
producers will look to regain margin previously
lost as their costs crept higher.
Plastics Analyst
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