Stretch Wrap and Poly on the Rise for May

Spot Polyethylene trading ended April with a flurry as still rising prices sent buyers to procure in a hurry. PE prices rose $.01/lb across the board, except for LDPE for film, which gained an extra half-cent. It is typical to see this premium expand in rising markets. Most market participants expected April PE contracts to roll flat, but a major consultancy assessed April contracts up $.03/lb, adding a level of confusion to PE pricing.  

The Plastics Exchange, had already turned bullish on Polyethylene, so while we think that the current pricing action is awkward, we have nothing to complain about. It now seems that April contracts could very well be confirmed up $.03/lb and there is another $.03/lb increase on the table for May – which will make for some interesting producer / processor discussions.

More info at: www.quickpakinc.com