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

Protective packaging predicted to grow 6.1 percent annually

October 29, 2014 3:39 pm ET

Protective packaging looks to be a high-growth market in the coming years, according to a new study by Freedonia Group Inc.    More

Image

Schütz investing $20 million for bulk container production in Missouri

October 29, 2014 11:18 am ET

German packaging company Schütz GmbH & Co. KGaA is expanding its presence in the United States through a $20 million project in Missouri slated to...    More

Global LDPE market forecast to hit $37.2 billion by 2021

October 29, 2014 9:12 am ET

Global sales of low-density polyethylene (LDPE) are forecast to rise from $33 billion in 2013 to $37.2 billion by 2021.    More

Image

Germany's BÖ-LA taking touch sensitive film further into the marketplace

October 28, 2014 12:27 pm ET

FRIEDRICHSHAFEN, GERMANY — A German producer of screen-printed decorative films for insert molding featured a new demonstration part at Fakuma...    More

Image

Trex sets quarterly sales record with more business on tap

October 28, 2014 1:09 pm ET

Composite deck maker Trex Co. Inc. set sales and earnings records for the third quarter of 2014 and is on track to see revenue reach $388 million for ...    More

Market Reports

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

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