Tighter resin prices leading to price hike for PE film

By Jim Johnson
Senior Staff Reporter

Published: August 29, 2014 11:13 am ET
Updated: August 29, 2014 11:18 am ET

Related to this story

Topics Packaging, Film & Sheet

One of North America’s largest film makers is pushing through a polyethylene price increase due, in part, to the tight resin market.

AEP Industries Inc.’s Stretch Film Division has alerted customers that prices will increase by 6 percent for all grades of stretch film effective with all orders starting Sept. 22.

Plastics News previously reported that unplanned downtime at several plants, including sites operated by Dow Chemical Co., LyondellBasell Industries and Chevron Phillips Chemical Co., was creating tight demand and higher prices for PE resin.

Now, users of the resin are feeling the need to pass along those price increases, including AEP, which ranks No. 7 on Plastics News list of the largest film and sheet makers.

Sigma Plastics Group and Berry Plastics Corp., two other heavy hitters in the film and sheet business, previously indicated efforts to push through a price increase as well, while they and AEP have also been pushing for price increases due to non-resin related costs since late spring.

AEP, in its letter to customers, indicated the latest increase is “due to unplanned outages, increasing energy and feedstock costs, and improved global demand.”

The company, in advance of the upcoming increase, will limit orders in September “to a quantity equal to one month of their average historical six months purchases,” AEP said in the letter.


Comments

Tighter resin prices leading to price hike for PE film

By Jim Johnson
Senior Staff Reporter

Published: August 29, 2014 11:13 am ET
Updated: August 29, 2014 11:18 am ET

Post Your Comments


Back to story


More stories

Image

Report: Brands are falling short on packaging sustainability

January 29, 2015 5:19 pm ET

Packaging in general, and plastic packaging in particular, has a long way to go in terms of recycling, according to a pair of environmental groups.    More

Image

Profit dips at Bemis Co. Inc.

January 29, 2015 2:04 pm ET

Profit dipped for Bemis Co. Inc. for all of 2014, but were up during the fourth quarter in what the company's leader called a “pivotal year....    More

Image

Plastics News Now: Losing weight with style, plastics in the Dragons' Den

January 29, 2015 6:00 am ET

A 19-year-old entrepreneur brings business to a U.K. injection molder after winning support on TV's Dragons' Den, auto suppliers combine...    More

Image

African equity fund invests in Kenya's General Plastics

January 28, 2015 4:24 pm ET

An African investment fund specializing in agriculture has invested in Kenyan packaging firm General Plastics Ltd. to provide funds to expand in the...    More

M&A deals in packaging hit record

January 28, 2015 1:49 pm ET

It's good to be in packaging these days. More precisely, it's good to be in packaging and decide to sell or merge.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events