May 2022 Raw Material Update
L/LLDPE resin prices were flat in May as the proposed $.06 / lb. increase has not succeeded. Ethylene is soft. PE resin producers have dialed back production levels as inventories have been elevated recently.
LDPE increased marginally in May.
LLDPE resin prices were higher by 4% to 5% in May
L/LLDPE resins were softer by 2.5% in May.
LDPE resins were softer by 6% in May in China.
LLDPE is one of the strongest grades of resin currently, but prices declined by about 1.5% in May.
LDPE is lower by 7% in May after operating at a premium to China in Q1.
LLDPE resin is lower by 4% in May.
Cost Improvement Recommendations in Pack Trax
In our October edition of Pack Trax we discuss the opportunities and potential for supplier conditioning on resin price corrections and futures. These are aimed at cost avoidance and cost improvement opportunities which could be substantial.
Pack Trax has introduced the first Ink Input Cost Reference Index. This tracks overall ink inputs in reference index form. Ink input costs are higher in November and December on stronger prices for pigments and initiators.
We have also introduced another new feature, Price Tracker. This feature provides subscribers with a three to five year price history for resins and films for all regions.
Pack Trax is one of the few publications which tracks pricing for PE films.
Pack Trax Flexible Packaging Reporting
We report flexible packaging films more thoroughly than any other source. PE films for all types of over wraps and sealant films are reported each month for captive and market film purchases by packaging converters.
Examples of data unique to Pack Trax
Extensive resin price tracking using actual prices paid rather than inflated indices or reference prices
Vertically integrated and market film price reports
Cost improvement recommendations
Specification management advice
Flexible Packaging Cost & Optimization Models
Pac Pro cost and optimization models are a highly effective
procurement tool. Models are simple to use and drop down
menus allow the user to simply select a variety of structures from
simple to complex with a click. Virtually all types of substrates
and adhesives can be selected from drop down menus.
Units of measurement are easily selected which allows you to
build models for units, M units, MSI, MLF etc. European structures can also be selected. Pouches can also be modeled.
The optimization module and our extensive User's Manual helps you to breakdown your packages down by individual cost driver and optimize each driver to place you in a position to lead supplier performance management.