IHS Chemical Week

Economics :: Prices

Markets Head for ‘Atypical’ Cycle Amid High Prices and Low Margins

11:53 AM MDT | June 30, 2008 | Rebecca Coons

Spot polyethylene (PE) and polypropylene (PP) prices have risen with the latest spike in energy prices, despite “mild” global resin demand, says Sebastian Castelli, commodities analyst at Société Générale (London). Producers are trying to recover margins, which suffered some erosion in the second quarter, Castelli says. Spot prices for low-density polyethylene (LDPE) and linear-low density polyethylene (LLDPE) have increased $100/m.t. in the U.S. since late May, and high-density polyethylene (HDPE) grades have increased...

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