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

PET film maker Evertis expanding production in Mexico, Brazil, Portugal

November 20, 2014 2:52 pm ET

Evertis, a PET film maker, is expanding production at plants in Mexico, Brazil and Portugal, the company said.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Image

New York City officials avoid taking a stand on plastic bag fee

November 20, 2014 11:28 am ET

New York Mayor Bill de Blasio's administration claimed Nov. 19 to be committed to dramatically reducing plastic bag consumption in New York City, but ...    More

Image

NS Farrington 'on track' to recycle 1 ton of PE per month

November 20, 2014 10:23 am ET

A polyethylene recycling program created by N.S. Farrington & Co. has passed the 60,000 pound mark.    More

Image

GSE hires industry veteran Bob Preston as new CEO and president

November 19, 2014 11:24 am ET

Geosynthetic liner maker GSE Environmental Inc. has named a new CEO and president: Bob Preston, who left plastics machinery manufacturer Davis-Standar...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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 Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events