Chemical and resin transaction prices have been erratic, August transaction prices for chemicals and resins overall were higher for only 43% of buyers polled when compared with July. About one third of the buyers polled expect chemicals and resins prices to be higher three months from now. Chemical prices were generally stable in August; PURCHASING's weighted index for spot chemical prices was 121.6 in August, compared with 121.3 in July.

However, some polymer resins moved ahead even during the doggiest of the dog days of this summer. The transaction price index for resins rose to 118.7 from a revised 115.9 in July. Reason: Makers of polyethylene, polypropylene, polystyrene, and polyvinyl chloride kept up the pressure on the price-increase labors they initiated several weeks ago. American Plastics Council data shows PE buying less robust than other resins. Domestic purchases of low-density grades are down 1% while high-density sales are up just 4% and linear low-density buys are up 5%. Still, PE prices have risen about 15% since December because there's no new capacity coming on-stream and producers have been able to control inventory in an on-again, off-again purchasing marketplace.