Plastics, resins & HDPE report: June 2017
PVC resin prices seem to be stabilizing after a brief drop the previous month. Seasonal construction markets may boost demand for pipe in the near future. Currently, supply and demand appear to be in balance, and major moves one direction or another seem unlikely for the next month or two.
The HDPE piping market has seen pricing consistently rise since 4Q16. For the first time this year, pricing has finally plateaued and, as of June 13th, is expected to hold firm for the next thirty days. There is some talk about the market giving up a penny or two per pound next month in the form of a market value correction. The caveat to this correction is all production lines are still running at capacity and deliveries are still running four to six weeks - in some cases eight. With the comeback of coal, natural gas and spending once again in the municipal markets, all major segments utilizing HDPE pipe, some industry insiders only see this pricing stall as a way for the market to catch its breath. Look for buyers of HDPE piping to see the inventory pricing stay firm for the next month with little to no fluctuation in price, and as we steam into the summer months, its reasonable for buyers to expect pricing to begin creeping back up again.