Prices Up for PE, ABS, PC, Nylons 6 and 66; Down for PP, PET and Flat for PS and PVC

April brought on an unexpected resin price increase for PE as well as price increases for the four volume resins — ABS, PC, and nylons 6 and 66, which were primarily based on higher feedstock costs versus a surge in demand or supply issues. The April-May time frame saw significant price decreases for PP and less so for PET, while PS and PVC prices remained flat.

Overall, projections for conclusion of the second quarter were for relatively stable prices pretty much across the board for these resins. However, there was the caveat of what is considered a “bullish” forecast for the 2024 hurricane season. The potential for unscheduled production shutdowns and associated transportation issues that could result would change this pricing scenario.

These are the views of purchasing consultants from Resin Technology Inc. (RTi); senior analysts from Houston-based PetroChemWire (PCW); CEO Michael Greenberg of The Plastics Exchange; Scott Newell, executive vice president, polyolefins at distributor/compounder Spartan Polymers; Mike Burns of Plastic Resin Market Advisors; and resin pricing expert Robin Chesshier.

PE Prices Up, Then Flat

Polyethylene prices moved up 3¢/lb in April, though it does not appear the increase was fully implemented across the market, according to PCW’s Associate Director for PE, PP, and PS David Barry as well as Greenberg, Burns and Chesshier. This, as different results came from the two leading indices —one assessing a 3¢/lb price hike while the other rolled over prices. 

Reports Greenberg, “The Plastics Exchange spot PE prices averaged down 1¢/lb in April.” He characterized the domestic market as fairly firm and tightly supplied in May, and ventured the 3¢/lb increase could become fully implemented by month’s end. Meanwhile, PE suppliers were out with a 3¢/lb May increase, though this was not expected to materialize.

Noting the April increase — led by unexpected above-average demand boosted supplier margins and challenged the full return of the January increase — Burns ventured that the continuation of neither feedstock pressure nor production issues, PE stable prices with ample inventory appeared to be the scenario prior to the advent of the annual hurricane season. PCW’s Barry described overall demand as returning to “normal levels” versus prebuying activity, with spot market prices as pretty stable. Resin pricing expert Chesshier ventured the potential for a price reduction in June and uncertainty for July due to active weather forecasts.

PP Prices Down

Polypropylene prices in May were largely expected to drop by about 2¢/lb, in step with propylene monomer, following the long awaited industry price adjustment in April of a 10¢/lb reduction, with generally ‘stable’ pricing projected for the June-July time frame, according to Barry, Newell and Greenberg. Meanwhile, at least one PP supplier was out with a 3¢/lb margin increase for May, though support was unlikely. These sources concede that PP pricing is likely to continue tracking the monomer.

Both Barry and Newell saw uncertainty in terms of propylene availability and PP demand that, while better than fourth quarter 2023, was generally slower than previous years. A key issue is propylene availability, which they described as still relatively tight with a planned shutdown of one PDH plant scheduled for June. “While PP demand in April was up, it was difficult to discern whether this was due to ‘real demand’ versus prebuying as PP prices dropped. We’ll soon find out,” Newell notes.

Greenberg ventured that monomer and PP pricing was likely to be flat and noted that PP inventories were down a bit by May’s end and that suppliers need to crank up production, as PP plant operating rates have been largely in the mid-70s percentile. Meanwhile, Canada’s Heartland Polymers restarted its PDH unit and is characterized as “aggressive” in selling its PP homopolymer and random copolymer resins, while Formosa brought on a new PP production unit at Point Comfort, Texas.

PS Prices Flat for Now

Polystyrene prices rolled over in May, following April’s trend, and the trend for June-July time frame was for continued flat pricing to possibly lower, according to PCW’s Barry and resin pricing expert Robin Chesshier. This following first quarter prices increases totaling 10¢/lb, driven primarily by benzene prices. Based on market fundamentals while barring any major supply disruption, PS prices could remain relatively stable.

Meanwhile, Trinseo commenced a sale process for its 50% ownership in Americas Styrenics (“AmSty”, The Woodlands, Texas), a joint venture with Chevron Phillips Chemical, which is anticipated to take place by early 2025. There are also industry rumors that Total Energies, which operates a styrene monomer plant in a 50% joint venture with SABIC and a Total PS unit, said to be one of the world’s largest, both in Carvilee, Louisiana, may also be looking to divest of this styrenics business.

PVC Prices Flat

PVC prices appeared to be poised for relative stability, following unusual back-to-back increases totaling 6¢/lb through April, according to Paul Pavlov, RTi’s vice president of PP and PVC, and PCW’s Associate Director PVC & Pipe Donna Todd. “Demand is relatively robust — particularly due to infrastructure projects, yet still not as robust as years past,” Pavlov says. He said domestic demand for PVC was up by nearly 10% with exports up 3%. At the same time, he noted that both Shintech and Formosa were bringing on new PVC capacity this summer with improved pricing offers likely to be had.

PET Prices Down, Then Flat

PET prices in May were poised to drop by 1¢ to 1.5¢/lb based on raw material formulation costs, particularly a drop in paraxylene, according to Mark Kallman, RTi’s vice president of PVC, PET and engineering resins. Kallman ventures that prices would then reverse to March-April levels for most of the third quarter. He characterized resin availability as strong, with competitively priced imports continuing to be a factor despite higher freight costs. “Demand is a bit improved but not robust.”

ABS Prices Up, Then Flat

ABS prices moved up 4¢/lb to 5¢/lb by April, though suppliers had sought 7¢/lb-to-9¢/lb, based on price escalation in key feedstocks such as benzene, according to Kallman. Despite one major supplier seeking a new price hike, Kallman ventured unlikely support for it and that relatively stable pricing would continue through third quarter. He characterized demand as “steady.”

PC Prices Up, Then Flat

Polycarbonate prices moved up between 3¢/lb-to-5¢/lb by April, despite suppliers seeking increases of 10¢/lb, and forward pricing for third quarter is likely to be relatively stable, according to Kallman. As previously reported, prices dropped 3¢/lb-to-5¢/lb in the January-February time frame. Kallman characterized demand as static with good supply, including well-priced imports. But noted that both SABIC and Trinseo have plans to shutter PC plant production in Europe due to major new capacity brought on by China.

Prices of Nylon 6, 66 Up, Then Flat

Prices of nylon 6 moved up 7¢/lb-to-9¢/lb in by April, though suppliers sought increases of up to 24¢/lb. This following downward pricing in fourth quarter of last year, according to Kevin Mekaru, RTi’s senior business unit leader, commodity plastics. Based on lower or steady costs of key feedstocks including caprolactum, propylene and benzene, he ventured relatively flat pricing through third quarter.

Prices of nylon 66 moved up 5¢/lb-to-7¢/lb by April, though suppliers sought increases in the double digits, according to Kallman. He characterized the market as steady with lower raw material costs that can well translate to relatively stable pricing for most of third quarter.