03 April 2012 22:59 [Source: ICIS news]
ORLANDO, Florida (ICIS)--Growing inventories in the US polyethylene (PE) market should put some downward pressure on pricing in April, a producer said on Tuesday.
While recent spikes in ethylene spot prices could push prices higher initially, the producer, speaking on the sidelines of the National Plastics Exposition (NPE) at Orlando, Florida, said that’s not likely to be enough to push PE prices higher for the month.
"Producers will be more aggressive by the end of April," the producer said.
Other market participants said they believe some producers will try to implement at least some of an increase in April. Those market participants base their outlook on the fact that, in recent months, feedstocks have been more of a factor in PE pricing than supply and demand.
But, with many of the cracker turnarounds completed in April, the producer said it expects supply and demand to begin to reassert itself in the PE market.
The four-day NPE is sponsored by the Society of the Plastics Industry (SPI) and runs until Thursday.
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