Resin buyers gain leverage as inventories stay high and demand remains soft

Plastic resin producers are seeking September price increases across several categories, but elevated inventories, weak demand and healthy supply are limiting their negotiating position. New capacity is entering the market while vehicle sales and residential construction remain subdued.

Commodity resins including polyethylene, polypropylene, PVC and PET lack broad cost support for higher prices, while benzene-linked engineering resins have stronger justification for increases. Recent declines in ABS and concessions in polycarbonate have largely come through buyer-initiated negotiations, including surcharge reductions.

Read the full story at plasticstoday.com.