News and Testimonials

29/08/2017 - News
PRICE INCREASE - POLYETHYLENE CONVERTER FILM - August 2017


Price Increase Polyethylene Converter Film

 
It appears that the increase announced by the Polyethylene resin producers will hold for August 2017, as a result of Hurricane Harvey and the flooding in Texas. This means that PE prices have increased by USD $0.03/lb. retroactive to August 1, 2017.

The industry did not expect this to go through and as a result inventories of the July lower priced resins are now nearing depletion.

Polykar will therefore be increasing the price of all grades of converter film by CAD $0.04/lb., effective for orders placed as of September 5, 2017. Orders received from now to September 5, 2017 must be for immediate delivery.

It is also important for you to be aware that as a result of the flooding, at least one producer has declared Force Majeure and more declarations are expected. In addition, rail lines in and out of the area are severely flooded and it is uncertain when they will be open for rail traffic.

The supply of resin will be very tight for the near future and restricted allocations are likely. We do expect that resin producers will announce additional price increases in September 2017.

We will closely monitor this situation, but it may force an additional price increase for converter film in the future.

We thank you for your support and continued collaboration.

Yours sincerely,

Randy Shermet
Vice President Sales & Business Development

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