Final thought from The Plastics Exchange CEO Michael Greenberg

The heightened spot trading activity seen at the end of March continued right through the first week of April. Spot prices for both polyethylene and polypropylene have been slipping the past several weeks and the growing discount to contracts are catching processors’ attention.As Perry writes, “How could Milgram have measured destructive obedience, the authors askedFlag Zentai Suits, if his subjects saw the experimenter as a benign authority? PE producers are already shying away from their $.06/lb increase nominated for April and could be challenged to keep contract prices flat this month. Spot PP resin and PGP monomer markets have been softer, but resin contracts will follow monomer costs again and PGP has already been nominated flat for April. We think a PP contract price decease of $.01-.02/lb makes more sense and would be healthier for the market. Polypropylene demand has been crimped by high US monomer costs and resin prices; incidentally, we have started seeing PP imports on both coasts peting for domestic resin orders.

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