March 2012

It’s hard to imagine spot monomer trading above the price of its derivative, but that seems to be occurring right now in the PE and PP Chain.

Polyethylene continues to move upward as it would seem another $0.03 cpp has crept into the market. Demand may be just “ok” here in the US, but export pricing has been moving up as other areas of the world face higher naphtha prices.  Add in that anyone having to purchase in the ethylene spot market to support their PE production will be paying into the seventies, and we have support.  Not a very easy market to call, but in this environment I would expect producers to be pushing the $0.07 cpp increase for April.  (read full article)