Market overview: Spot resin trading picked up as October drew to a close, with polyethylene (PE) prices mostly steady while polypropylene (PP) lost another cent. Spot-trading platform, The Plastics Exchange (TPE), reported that despite a $0.03/lb price-increase nomination, October PP contracts fell $0.015/lb, along with polymer grade propylene (PGP) monomer. PE contracts had been nominated to increase by $0.04/lb, and while some producers have agreed to push off the increase until November, others held firm to enforce the increase in October. Several producers have already issued a $0.05/lb price increase for December PE contracts.
Energy markets: December crude oil futures eased $0.26/bbl to end the week at $81.43/bbl, while natural gas futures snapped a 5-week losing streak, rebounding about 10%. The December contract jumped $0.345/mmBtu to settle at $4.038/mmBtu on Friday. The crude oil : natural gas price ratio contracted sharply, but remains historically wide at 20:1, with parity at 6:1.
Ethylene spot prices continued higher, with material for November delivery adding more than $0.015/lb to climb back above $0.40/lb. The September net transaction price (NTP) was $0.39/lb, with October not yet established. TPE CEO Michael Greenberg noted that it has been some...