Oil Price Down, Monomer Prices Stable or Increasing, Polyolefin and Polystyrene Prices Increasing – Supply/Demand Fundamentals Continue to Define the Markets
The premature closure of PE, PP and PS order books in November was for most in the industry a significant surprise. Typically this is a time of the year that polymer producers work hard to clear inventory so that there is sufficient storage capacity to absorb the polymer which is produced during the Christmas period when polymer processors are typically closed, and not taking deliveries over the holiday season.
The supply situation in November has set the stage for the market movements in December, where despite continued weakness in the crude oil market, key polymer feedstocks have either rolled-over or increased in price. Furthermore, polymer producers have announced and apparently successfully implemented price increases across a wide range of materials, including PE, PP and PS.
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