The Plastic Resin Buyer Brief

Benzene costs dropped, but two producers are still asking up to 16¢ more for November polycarbonate. Michael Workman explains why that letter is weaker than it looks, and gives three questions to ask before you answer any resin increase. Plus: see you at AMI Plastics World Expo in Cleveland.Chapter markers 00:00 Is there a PC letter on your desk? 00:45 Where the pressure sits 01:20 PC: negotiate the push 03:00 Three questions before you answer any letter 04:10 Close + see you at AMI ClevelandLinks:→ Reply for this week's outlook → Newsletter → YouTube

PE and PP producers have a supply story; the benzene chain has falling feedstock. Kevin Mekaru and Tyler Wheeler answer resin buyers' questions on both, live.The resin market split in two this week, and so did the negotiations buyers are having with suppliers.On one side, polyethylene and polypropylene. Formosa declared force majeure at Point Comfort, and LyondellBasell's Lake Charles plant stays down into November. Kevin Mekaru explains why a 7¢ nomination is not a settlement, why you should ask whether your grade is even made at the plant that's down, and how to find the margin inside a 3¢ PP letter.On the other side, the benzene chain. Benzene spot fell from $4.78 to $4.10 a gallon while polycarbonate and ABS letters kept arriving. Tyler Wheeler explains how to negotiate when the feedstock turns mid-conversation, and why this fall is the moment to reset baselines for 2027.Then Michael Workman takes the audience's questions on 2027 contract terms beyond price, and on how a supplier's year-end sales targets can become a better baseline for next year.Chapter markers: 00:00 Welcome 03:03 Two resin markets 04:31 PE, PP, PVC and PET 07:10 PS, nylon, PC and ABS 09:58 Lock in or wait? 12:57 Nominations are not settlements 14:47 One force majeure, a market-wide increase? 16:32 The negotiable margin in a PP letter 18:21 Falling benzene, rising PC letters 20:53 Will nylon come back? 24:51 The October PGP settlement 26:53 PVC 28:51 2027 contract terms 32:02 The seller's year-end playbook 35:18 Trust but verify 36:47 Free benchmark and AMI ClevelandLinks:→ Request your free benchmark assessment→ Subscribe to the newsletter→ Watch on YouTube

Spot benzene just fell below the October contract behind this month's PS and nylon increase letters. Michael Workman explains what that means for buyers and lays out a three-step method for separating real feedstock cost from margin, plus a quick read on where pressure sits across the market.Chapters 00:00 Spot benzene falls below the contract 00:45 Where the pressure sits 01:20 PS and nylon: pay the real part 03:00 Separating cost from margin 03:55 CloseLinks:  Newsletter YouTube

September tightened PE and PP supply. Here's the argument that replaces "nothing has changed" on your October and November letters.Last week, Resin Market Moves gave buyers two questions for every increase letter: Is the cost real? Has supply tightened? This week, the second answer flipped for polyethylene and polypropylene. Michael Workman explains what that does to your leverage.Polyethylene: Producers are pushing up to 7¢/lb, and September inventories drew down sharply as sales outpaced production. "Nothing has changed" no longer works. But one month isn't a trend, with exports softer and Golden Triangle's new capacity coming online. Negotiate how big, how fast and what protects you in November, and don't lock forward volume at announced prices.Polypropylene: Nothing proposed for October, but LyondellBasell and TotalEnergies have announced 3¢ for November. Lake Charles is offline into November and two more producers expect downtime in Q4. Confirm your September decrease and place October volume before the calendar turns.Polystyrene and nylon: The October benzene contract finalized about 80¢ above September, and spot rose another 25¢ this week. On nylon 6, the asks run from 14¢ to 20¢ against the same benzene. That spread isn't feedstock. Pay the real part and challenge the rest.ABS, PC, PET and PVC: Costs are climbing on the first three, but no letters yet, so don't volunteer. PVC buyers have the market. Hold, and ask for a decrease where your contract allows.He closes with the rule for the week: when the answer changes, change the argument.Michael, Kevin Mekaru and Riley Olsen are walking PACK EXPO International at McCormick Place in Chicago this week. If you're there, bring your October letters. Email [email protected] to find a time.Chapter markers:00:00 The supply answer changed00:24 ResinSmart at PACK EXPO00:52 Polyethylene01:42 Polypropylene02:26 The benzene chain: PS and nylon03:22 ABS, PC, PET and PVC03:54 Change the argumentLinks:→ Request Your Benchmark Assessment→ Read this week's newsletter→ Watch on YouTube

Brian Balboa and Michael Workman unpack the MAPP Benchmarking & Best Practices Conference: what processors are worried about heading into Q4, what happened when buyers negotiated the same resin account twice, and the one question to ask on every line of your next increase letter.At the MAPP Benchmarking & Best Practices Conference in Indianapolis, processors came with one question: what should I be paying for the resin I buy?ResinSmart's Brian Balboa talks with Michael Workman, Executive Director at ResinSmart, about what he heard at the show and what buyers can take into their next supplier conversation.In this episode:Why MAPP feels different from a trade show: processors comparing notes, with nobody there to be sold toThe three concerns raised most often: the wave of Q4 increase letters, buying knowledge that's close to retirement, and visibility into how you're doing on what you buyInside the live negotiation workshop, where the same account was negotiated twice, first on instinct and then with what each grade should costWhy an increase letter is a nomination, the seller's opening position, and always a mix of cost and marginThe two most expensive buyer mistakes: anchoring on the supplier's number, and giving away term without getting anything backHow processors are approaching cost and margin heading into Q4What blackjack has to do with resin buyingThe one thing to do differently in your next negotiationChapter markers:00:00 Welcome and MAPP 2026 recap 00:47 Why MAPP isn't a typical trade show 02:14 The 3 concerns processors raised most 03:40 Same resin account, negotiated twice 05:58 The biggest mistake resin buyers make 07:35 Heading into Q4: cost, margin and procurement 09:58 Other MAPP sessions worth noting 11:21 The best card player at ResinSmart 12:12 One thing to do in your next negotiation 13:16 Where to learn moreLinks:→ Watch Resin Buyer vs. Seller, Pt 2 on YouTube→ Request a ResinSmart benchmark→ Follow ResinSmart on LinkedIn