Crude Oil Surge Does Not Automatically Translate to Higher Resin Prices

Crude oil prices surged nearly $7 last week to reach close to $88 per barrel. However, according to ResinSmart, this increase does not necessarily mean higher resin prices across the board.

Michael Workman, executive director of ResinSmart, noted that 'crude oil gets attention because it's an easy number to watch, but it doesn't tell you what you should be paying for resin.' He emphasized that buyers need to understand the specific market fundamentals driving their prices before accepting any increases.

ResinSmart's latest analysis shows a split resin market, with different conditions affecting various categories. For instance, polyethylene (PE) inventories have been increasing for four consecutive months in July, limiting producer pricing power. Despite PE producers pushing for a 5-cent-per-pound August increase, ResinSmart's analysis suggests buyers still have room to resist the initiative.