I wanted to post a quick update about what has been happening with PE resin pricing lately, and also about lead times.
After a year of ups and downs in resin pricing, 2016 appears to be closing out on a relatively quiet note. According to The Plastics Exchange, PE “contracts seem to be gravitating towards a decrease of $.03/lb, as originally offered by several producers early in the month. Processors, noting significant weakness in the spot market, were looking for a sharper decline – perhaps there will be additional relief in December.”
Indeed, we have been hearing the same thing, and any decreases in resin costs will be a welcome course direction change that can offset some of the increases we’ve seen.
As for our current lead times, we’re still meeting 99% of of all due dates, but schedules remain very tight—we’ve been having to schedule many jobs with as much as a 4-week lead-time window. With that in mind, if you know you’ll be placing an order sometime within the next month or so, now would be a good time to send us a note so we can schedule appropriately.
If you have any questions or comments about this update, please send us an email. Thank you for your continued business, and we look forward to serving you.