Price know-how April

Recovering Oil Prices Drive up Feedstocks with the Inevitable Push for Polymer Price Increases. Reinforced by Further Weakness of the GBP.

As illustrated in the table and graph right, a £40 per tonne increase in the price of Brent Crude has stimulated price increases across the full range of key polymer feedstocks. The driving force behind higher oil prices is not entirely obvious, since many pundits have been predicting that the market price for oil could go even lower as product from Iran hits the market. Others may point towards the more general recovery in commodity prices and suggest that the recovery is simply a market correction after the price pendulum swung too far.

Further price pressure continues in the form of devaluation of the GBP. Comparing the opening rate in April with March, there has been a drop of €2.00, which corresponds to a further 1.5% of potential cost increase. The slower rate of erosion against the USD is notable and is not likely to have any serious influence on the price of products coming from Asia.

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The concept of a user friendly market report came from feedback about an article published in PRW (Plastics & Rubber Weekly) about the 2011 market outlook to which Plastribution made a significant contribution.

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