Nick Vafiadis, Vice President, Plastics, IHS Markit, provided an update on the polyolefin market at the recent FPA Fall Conference.
Before Hurricane Harvey made landfall in Corpus Christi, Texas, the August price increase proposal was unlikely to succeed. The September four cent price increase proposal appeared unfounded and unlikely. PE producers were negotiating 2018 supply contracts with diminished leverage. International markets were anticipating an arrival of large volumes of resin associated with new U.S. capacity. PE processors were lowering inventory levels in expectation of near term price reductions. Resin delivery options were numerous and reliable.