GLG News by Rigid Plastic Packaging Experts

Ethylene producers have returned to profitability.  While ethylene prices are dropping quickly, feedstock prices are dropping faster.  While heavy feedstock cracking may still be negative, the overall industry (median margins) are back in positive territory.  Derivative margins are quite...

Japanese ethylene producers are beginning to reduce operating rates to adjust to market conditions.  Because of their relative high costs in Asia, Japanese producers are the marginal suppliers.  As they reduce production, we see the deepening of the trough hit Asia.

The hopeless housing market puts US PVC makers in a very poor position.  Global PVC capacity is up, and prices and margins are falling.  New capacity will toughen the market conditions on a global basis.  In the meantime, falling chlorine consumption is sending caustic prices higher.

Dow seeks to lead the industry to try to recover the increase in energy costs.  An across the board increase makes sense if energy costs have equal effect on manufacturing costs.  The move certainly gives them another opportunity to raise the awareness of energy prices on chemical produce...

First quarter results from converters confirm that demand for plastics packaging materials is down.  The good news is that higher revenues are attributed to thier ability to increase prices.  If converters have pricing power in the market, this should be good news for resin producers.

Energy costs are the most important input to chlor-alkali production costs.  Companies who have advantaged energy contracts, like those with low cost hydroelectric power, have a significant cost advantage in the market.  If Ineos can secure discounted electricity supplied to their operations...

At first glance, it would seem that a company already in the plastic container business would have a fairly simple time entering another segment of that business.  In some cases, this is not true.    

Specialty chemical are not as sensitive to underlying raw material costs as commodities.  In addition, the structure of specialties softens the price volatility.  Commodity chemicals will not enjoy these kinds of results as energy prices increase, a recession looms, and increasing global capacity...

SPX`s acquisition of APV is a fine example of a strategic power play to gain market share from formable giants the likes of Tetra-Laval and GEA.  Timely executed the strategy takes advantage of a recognized need for higher heat exchanger efficiencies and an increase of installed base. ...

Cultures have almost always wanted to maintain their worlds pretty much without change.  As the old saying goes, everybody talks about the weather, but nobody does anything about it.  In fact, they don't want to.