US spot HDPE blow molding prices increase on European demand – Petrochemicals | Platts News Article & Story

Plastics Mar 10, 2011 No Comments

US HDPE blow molding spot export prices increased nearly 3.5 cents/lb ($77/mt) to 64 cents/lb ($1,411/mt) FAS Houston, trading sources said Wednesday.

“I can export all day at 64,” a trader said.

Traders said they were able to easily sell blow molding into into Antwerp at $1,540/mt CFR. Considering freight of about $70/mt, there was plenty of margin for exports.

“I think producers are moving it internally, too, since their costs are so much lower in the US,” a trader said.

European ethylene costs have been impacted from the recent jump in oil prices, while US ethylene economics have been spared the oil surge as they are based more on ethane.

The spot ethylene price in Europe was assessed Wednesday at Eur1197.5/mt ($1,665/mt) FD NWE, which was significantly higher than the US price, which was close to 54 cents/lb ($1,193/mt) FD USG.

via US spot HDPE blow molding prices increase on European demand – Petrochemicals | Platts News Article & Story.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.