Tight supply also led to price increases this month

Tight supply also led to price increases this month

Polymer prices have continued to climb this month due to rising raw material costs and tight supply. Polyethylene rose by at least 6%, following the higher than expected rise in feedstock costs. An unusual number of plant outages limited the availability of ethylene.

Polypropylene producers were more aggressive this month in raising prices, achieving gains of up to 8%. Polystyrene producers on the other hand were disappointed to have gained only 4-5% with competitive pressures being blamed. The biggest gains were in PVC, with some producers reportedly pushing through an additional 10% last month. Producers are extremely bullish about their prospects and maintain that current market conditions should support a sustained upturn in prices this year.

Polymer demand is about normal for the time of year, although sales should pick up this month as the main buying season gets under way. The scene is set for further, albeit smaller, price increases across all product groups in March.