Polyolefins Makers Give Back Hikes; More Declines are Expected.(Brief Article)

POLYOLEFINS PRODUCERS ARE BEING battered again by shrinking margins after giving back price increases obtained in the first quarter. "Polyethylene (PE) and polypropylene (PP) producers are, on average, just breaking even on a cash-cost basis," says Robert Bauman, v.p./polymers at Chem Systems (Tarrytown, NY). Margins should improve in the third quarter, however, because of expected declines in feedstock costs, says Bauman.

PE prices fell 3 cts-4 as/lb during May and June, sources say. These declines cancel out the 5 as/lb price increases achieved in March and April, sources add. A wide range of prices are quoted in the market, but market consensus is that PE prices …