NEGOTIATOR’S TAKE: Polypropylene resin prices continue to fall. Prices for parts and components today should be similar to what you were paying 6 years ago. Check with your Accounts Payable department to make sure this is true.
U.S. August ethylene contracts were mostly settled down 9.9% on Wednesday on weak spot prices. Sources said the drop of 3.25 cents/lb ($72/tonne) puts August contracts at 29.50 cents/lb. One large buyer did not agree to the settlement and was holding out for a steeper decline. The settlement puts contracts at their lowest since December 2008, when they settled at 28.5 cents/lb.
Lowest spot prices in six years
Sources said that spot prices in August fell between 7.0-7.5 cents/lb from July, pushing them to their lowest in more than six years. Cracker cash costs, however, were up less than 1 cent/lb despite cheap feedstock costs, mostly on weaker values for co-product credits such as propylene and aromatics.
The fall in August ethylene contracts still keeps contract prices above the spot market, which is atypical and is expected to lead to high volumes of spot transactions in September. US ethylene contracts typically settle near the start of the month for the previous month . . . read the rest of this ProPurchaser sourced article, HERE.
Source: ICIS, September 2015
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