Risk management can include future contracts that allow processors to lock in prices at certain levels, then receive or make payments depending on what happens within certain time frames.
Market sources said that although capacity utilization for North American PP was only around 80 percent in November, record levels of PP imports are affecting prices and supplies. Some of this material was ordered earlier in 2021, but didn't arrive until later because of shipping delays.
A steady supply of materials now available in the U.S., with more production expected to come online soon, is helping to ease price pressures. Resin prices still are higher than this time a year ago, however.
Total s LaPorte, Texas, site.
LA PORTE, Texas No one was injured in a Dec. 15 fire at a polypropylene resin unit operated by Total Petrochemicals in La Porte, Texas. But the incident is further tightening supplies of PP in North America.
Regional PP prices soared 14 cents per pound in December and now are up 33.5 cents per pound since May. Sources said another double-digit price hike could take place in January. The
Plastics News resin pricing chart will be updated Jan. 7. The fire was extinguished within a few minutes, a company spokeswoman said in a Jan. 5 email to
Plastics News. All personnel were accounted for and there were no injuries.