PE prices drop for first time in two years in USA

27-Nov-14

North American polyethylene prices in November have fallen for the first time in two years. As per plasticsnews.com. Following 30% declines in crude oil, PE prices fell an average of 3 cents per lb in November. The previous PE price drop was a 2 cent decline in November 2012. Since that point, six price increases totalling 23 cents per lb have hit the market. Polypropylene resin prices in the region followed suit, sliding by an average of 5 cents per lb in November. Market sources said that PE maker Nova Chemicals Corp. was the first to confirm the price decrease. Nova then was followed by ExxonMobil Chemical Co. and LyondellBasell Industries. Even though natural gas is used as a feedstock in most North American PE production, the price of oil is still used to set the resin price, since oil is used as a feedstock in majority of PE production globally.