January 2012

Just as one polymer is heading up, the cost to make another, Polyethylene in this case, is falling dramatically with the price of ethane and natural gas. These diverging themes in energy are leading to a very choppy start to 2012.

Polyethylene producers who gained a $0.05 cpp increase through production cutbacks in December were attempting to gain an additional $0.06 cpp in January.

Demand for PE globally currently appears to be steady, so while it is hard to see an increase occurring in January, the downside also seems limited.  (read full article)