Polyethylene Prices Rise with Bad Weather

In February bad weather helped with a 4-cent-per-pound price hike on all grades of polyethylene in North America. PE supplies tightened as a result of weather-related issues.

According to Plastic News:

“The 4-cent hike ended a four-month period of flat pricing for polyethylene. That’s a rare situation — since 2000, we’ve only seen four stretches of three months or more when polyethylene prices were flat, and two of them have been in the past 18 months. Market watchers chalk this up to producer discipline combined with relative growth in PE demand.

It’s worth noting that producer discipline in controlling inventories has played a role in preventing PE prices from dropping. The North American market has not seen a price decrease since late 2012.

What’s next for polyethylene? Well, some PE plants are running at near capacity right now, and suppliers are seeking increases of 6 cents per pound for March 1.”

via Plastic News

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