Happy New Year! We hope 2018 is off to a great start for you both personally and professionally.
Well, 2017 was quite a wild year for polyethylene pricing. The best summary we’ve seen comes from a recent Plastics Exchange newsletter, so let’s take a look:
“The market rallied in the 1st quarter and bottomed out near the end of the second quarter. It staged a modest recovery during the summer for what should have been its last hurrah before several new polyethylene plants came online with added production. Hurricane Harvey then rocked the market and sent prices absolutely soaring. The market peaked in mid-Sept and has been sliding ever since. Most PE resins still remain several cents higher for the year, but grades did not necessarily move together or to the same magnitude.”
Indeed, while prices have been trending down since the steep increases last fall, they’re still ahead of where they were for much of last year. What’s more, resin rose $.01/lb over the last week, and one producer just nominated another increase for February of $.04/lb. While it’s too early to tell if that will take hold, there are some rumblings that other producers will follow suit. As always, we will keep you updated on any major developments.
As for our schedule, we’re currently looking at 2- to 3-week lead times, and we expect those to tighten up a bit now that the holidays are behind us and 2018 is in full swing. If you’re planning any orders for the next month or two, now would be a great time to reorder or request a quote.
If you have any questions or comments about this update or would like to place an order, please let us know. Thank you for your continued business, and we look forward to serving you.