Summer Storm of Price Hikes

The holiday is over. Soft or flat prices in the first five months of the year ended with a thunderclap in June. As outlined below, virtually all commodity, engineering, and thermoset prices are brewing up a storm of increases.

 

PE prices up

Polyethylene prices gained 3¢ to 6¢/lb in June as May hikes took effect. Suppliers aim to implement two more increases—7¢ for June and 5¢ for July. The London Metal Exchange (LME) July short-term futures contract in butene LLDPE for blown film (56.2¢/lb) hardly budged from June.

Contributing factors: After losing 20¢ of last year’s increases, PE suppliers aim to regain 18¢ before summer’s end. Says one major producer, “While not stellar, demand is now much more solid and there is a momentum for firming up prices.” Ethylene monomer contract prices rose 1.5¢ to 2¢/lb in May and another 1-2¢ looked possible for June.

 

PP rising too

Polypropylene prices rose 4¢/lb in May and were on the way up another 5-6¢ in June. New hikes of 4-5¢/lb were announced for July 1. LME’s July short-term futures contract for g-p injection-grade homopolymer was also on the rise—54.8¢/lb vs. June’s 53.2¢ and May’s 50.1¢/lb.

Contributing factors: Suppliers cite increased demand and continued escalation of costs of monomer, energy, and transportation as prompting their price hikes. Propylene monomer contracts rose 2.5¢ in May to 49.5¢/lb, and June contracts were expected to gain another 3¢. Demand was up 3% to 4% from 2005 in the second quarter. Says one producer, “Supply is tight and demand is firming, but it’s hard to tell how much is inventory replenishment.”

 

Higher PET prices

June bottle-resin tabs rose 4¢/lb as suppliers implemented May increases. An 8¢ hike is coming for July.

Contributing factors: Pressure from feedstocks, particularly paraxylene, is behind the latest increases. Paraxylene shot up from its typical level of 30¢ to 40¢/lb to 58¢/lb in June and is expected to top 60¢ this month.

On the other hand, resin supply has been ample and is growing. Wellman started up a 300-million-lb line last month, the first of over 1.1 billion lb of new capacity due by early 2007. At the same time, demand in the second quarter was up 7% over the same period a year ago, and resin operating rates are back up to the low 90% range.

 

Other polyolefins

Ticona, the sole North American manufacturer of UHMW-PE, is increasing prices as much as 20% on July 1.

Eval Co. of America hiked EVOH 15¢/lb on June 1.

 

Small PVC hike possible

PVC resin prices were flat or slightly lower in April and May, but producers hoped to get half of their 2¢/lb hike for June. PVC demand picked up in May. Preliminary figures show 2006 demand down 4.4% through April but off only 2% through May. Resin operating rates rose from 88% in April to 92% in May, but sales were at 97% of capacity.

 

PS threatened by soaring benzene

Polystyrene prices, down about 8¢ since December, are poised to take off again. Producers implemented a 5¢ increase announced for May 1 and all supported a 4¢ hike for July 1. Two producers announced another hike for July 10—Dow for 6¢ and Nova for 4¢/lb.

Contributing factors: Contract benzene prices rose from $2.80/gal in May to $3.30 in June. That ate up the 5¢ hike in May and left producers still in the red.

 

Engineering resins up in June & July

Nylons—DuPont’s standard nylons are up 12¢ and Zytel HTN grades up 16¢/lb. BASF raised standard nylons 10¢ and specialties 12¢/lb. Honeywell’s extrusion, fiber, and neat nylon 6 are up 8¢, DSM increased nylon 6, 66, and 46 by 12¢/lb.

Polyesters—DuPont and DSM hiked PET, PBT, and copolyester TPEs 12¢/lb, while BASF and Ticona raised them only 10¢. DuPont’s PCT went up 16¢.

Styrenics—BASF and Lanxess hiked ABS, ASA, AES, SAN, ASA/PC, and ABS/nylon 7¢/lb.

Also, acetals from DuPont and BASF went up 10¢ and DuPont’s LCPs rose 16¢. Ticona’s filled PPS rose 10%.

 

Thermoset increases

Unsaturated polyesters saw a 3¢/lb increase from Reichhold, AOC, Interplastic, and CCP in late June.

On July 1, Dow lifted tabs of liquid and solid epoxies by 6¢ to 8¢/lb, while cycloaliphatic epoxides rose 20¢/lb June 15. 

 

 

Market Prices Effective Mid-June A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    80 - 90      3.0 - 3.4       HI IMPACT    85 - 125      3.2 - 4.7       X-HI IMPACT    95 - 140      3.6 - 5.3       HI HEAT    85 - 110      3.8       PIPE    85 - 110      3.2 - 4.1       SHEET    90 - 110      3.4 - 4.2       TRANSPARENT    125 - 165      4.9 - 6.4       FITTINGS    85 - 115      3.2 - 4.3       PLATING    95 - 105      3.5 - 3.9       FLAME RET    120 - 140      4.6 - 5.9       STRUCT FM    83 - 97      3.6 - 4.3       10% GLASS    125 - 140      5.0 - 5.6       30% GLASS    116 - 136      5.3 - 6.3       ABS/PC ALLOY    145 - 180      5.5 - 6.8       ABS/PVC ALLOY    130 - 135      5.8 - 6.1       ABS/NYLON ALLOY    190      7.3       ACETAL           HOMOPOL    130 - 147      6.7 - 7.3       20% GLASS    160 - 220      9.0 - 12.4       COPOLYMER    133 - 145      6.8 - 7.4       25% GLASS    160 - 230      8.1 - 11.7       ACRYLIC           G-P    117      5.0       IMPACT    192      8.2       ACRYLONITRILE COPOL           EXTRUSION    101 - 116      4.0 - 4.6       INJECTION    120 - 135      4.8 - 5.4       ALKYD  65 - 74    4.9 - 5.5       CELLULOSICS           ACETATE    187      8.6       CAB    189      8.2       CAP    189      8.2       DAP (G-P)  251 - 497    16.7 - 34.7       EPOXY           G-P RESIN    116 - 126      NAd       COMPOUNDS               C/B/Te    123 - 166      9.4 - 12.9       R/C/Df    208 - 271      15.3 - 20.1       SEMICONDUCTOR               NOVOLAC    193 - 228      13.1 - 15.9       ANHYDRIDE    188 - 268      13.9 - 19.2       EVA           INJECTION    46 - 52      1.5 - 1.7       FILM EXTRU    42 - 49      1.4 - 1.6       EVOH  265    11.3       FLUORO-POLYMER           CTFE    2500 - 5500     193 - 424       ECTFE    1470 - 1680     93.1 - 107.7      ETFE    1155 - 1680     70.7 - 102.8      FEP    971 - 1470      74.8 - 113.2      PFA    1785 - 2520     134.9 - 190.5       PTFE    450 - 900      34.8 - 69.7       PVDF    680 - 900      43.3 - 57.3       IONOMER           PACKAGING    127 - 166      4.3 - 6.0       INDUSTRIAL    150 - 244      5.0 - 8.3       LIQUID-CRYSTAL POLYMERS           INJECTION MIN FILLED    690 - 1035      44.2 - 72.1       GLASS FILLED    695 - 895      40 - 52       CARBON FILLED    1700 - 2000     83.2 - 138.6      UNFILLED    1000 - 1200     58 - 70       EXTRUSION UNFILLED    1200 - 2200     60.5 - 110.9      MELAMINE COMPOUND  90 - 94    5.5 - 5.6       MELAMINE/PHENOLIC COMPOUND  75 - 83    4.5 - 5.0       NYLON           TYPE 6    139 - 159      5.7 - 6.5       MIN FILLED    131 - 144      5.4 - 5.9       30% GLASS    148 - 173      6.0 - 7.0       TYPE 66    153 - 168      6.3 - 6.9       MIN FILLED    151 - 159      6.2 - 6.5       30% GLASS    142 - 192      5.8 - 7.9       TYPE 69    250 - 276      9.7 - 10.7       TYPE 6/10    286 - 313      12.4 - 13.6       TYPE 612    400      15.3       30% GLASS    309 - 311      14.7       40% GLASS    309      14.7       TYPE 46    295      12.6       TYPE 11    329 - 341      13.6 - 14.1       30% GLASS    331 - 350      15.0 - 15.8       40% GLASS    347 - 360      17.7 - 18.5       TYPE 12    318 - 341      12.1 - 13.0       30% GLASS    327 - 350      14.7 - 15.8       50% GLASS    299 - 340      15.6 - 17.8       TRANSPARENT AMORPHOUS    247 - 360      10.3 - 15.0       PHENOLIC MOLD COMP  75    3.8       REINFORCED GRADES    105 - 268      6.1 - 16       POLYAMIDE-IMIDEg           UNFILLED    2750      148.5       30% GLASS    2500      135       30% CARBON FIB.    3500      185       POLYARYLATE  200 - 280    8.8 - 12.3       POLYARYL SULFONE  440    21.8       POLYBUTYLENE           G-P    94 - 96      3.1       FILM    88 - 91      2.9       PIPE               COLD WATER    116 - 120      3.9 - 4.0       HOT WATER    162 - 166      5.5 - 5.6       POLYCARBONATE           INJECTION    138 - 165      5.9 - 7.0       20% GLASS    177 - 190      7.6 - 8.2       30% GLASS    178 - 217      7.6 - 9.3       EXTRUSION    145 - 180      6.3 - 7.8       BLOW MOLD    155 - 190      6.7 - 8.2       STRUCT FOAM    149 - 181      6.4 - 7.8       20% GLASS    235 - 255      10.1 - 11.0       FR    166 - 197      7.1 - 8.5       CD    140 - 200      6.0 - 8.6       POLYESTER (TP) PBT TYPE           UNFILLED    143 - 150      6.9       HI-IMP    154 - 165      7.6       30% GLASS, FR    185 - 207      11.9       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    86 - 91      4.3 - 4.6       MOD PET               30% GLASS    132 - 143      7.4       55% GLASS    148 - 155      9.8       30% GLASS FLAME RET    147 - 157      9.2       PETG COPOL    114 - 124      5.2 - 5.6

RESIN GRADEb ¢/LB ¢/CU INc    POLYESTER THERMOSET           G-P ORTHO    135 - 140      NAd       ISOPHTHALIC    160 - 170      NAd       BIS-A    205 - 210      NAd       PEEK  4400    231       30% GLASS    3300      173       POLYETHERIMIDE  641 - 646    29.3 - 29.5       30% GLASS    526 - 531      24.0 - 24.2       POLYETHERKETONE (PEK)  2950    130.1       30% GLASS    2600      153       POLYETHERSULFONE  350 - 400    17.2 - 19.7       30% GLASS    425 - 525      21 - 25.9       POLYETHYLENE (RAILCAR) LDPE           G-P MOLDING & EXTRU    89 - 91      2.9 - 3.0       INJECTION    91 - 93      3.0 - 3.1       LID RESIN    92 - 94      3.1       LINER    87 - 89      2.9       CLARITY    84 - 86      2.8       EXTRU COATG    88 - 90      2.9 - 3.0       BLOW MOLD    92 - 94      3.1       LLDPE, BUTENE BASED           G-P MOLDING    76 - 78      2.5 - 2.6       LME 30-DAYj    56.2      1.9       FILM    78 - 80      2.6       ROTOMOLD    80 - 82      2.6 - 2.7       LLDPE, HAO-BASED           G-P MOLDING    79 - 91      2.6 - 2.7       LID RESIN    89 - 91      2.9 - 3.0       LINER FILM    83 - 85      2.7 - 2.8       HDPE           G-P INJ MOLD    76 - 78      2.6 - 2.7       FILM    84 - 86      2.8 - 2.9       BLOW MOLD    78 - 80      2.7 - 2.8       HMW-HDPE           BLOW MOLDING    83 - 85      2.8 - 2.9       FILM    85 - 87      2.9       PIPE    90 - 92      3.1       UHMW-PE  100 - 125    3.6 - 3.7       PPE/PPO BASED RESIN           INJECTION    180      6.8       20% GLASSh    283      12.3       30% GLASSh    291      13.3       EXTRUSIONh    242      9.2       STRUCT FM    231      NAd       PPS           40% GLASS    357 - 404      21.2 - 24.0       55% GLASS/MINERAL    289 - 310      20.8 - 22.3       65% GLASS/MINERAL    226 - 273      15.5 - 18.7       POLYPROPYLENE (RAILCAR)           G-P HOMOPOL INJECTION    80 - 82      2.6 - 2.7       LME 30-DAYj    54.8      1.8       EXTRUSION FIBER    78 - 80      2.5 - 2.6       PROFILES    84 - 86      2.7 - 2.8       RANDOM COPOL               BLOW MOLDING    85 - 87      2.8       FILM    84 - 86      2.7 - 2.8       INJECTION    82 - 84      2.7       IMPACT COPOL               MED IMP    93 - 95      3.0 - 3.1       HI IMP    96 - 98      3.1 - 3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    66 - 74      2.5 - 2.8       HI HEAT    69 - 77      2.6 - 2.8       HIPS    67 - 74      2.5 - 2.8       SUPER HI IMP    77 - 83      2.6 - 3.1       FR    85 - 93      3.2 - 3.5       STRUCT FM (FR)    105 - 108            EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  605    27 - 27.3       10% GLASS 430 20.6    557 - 612      24.9 - 25       30% GLASS 372 20.01    557 - 562      24.9 - 25       POLYURETHANE (TP)           ESTER TYPE    185 - 255      8 - 11       ETHER TYPE    245 - 295      10.6 - 13       PU ISOCYANATES           POLYMERIC MDI    118 - 135      NAd       80/20 TDI    145 - 155      NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL    53 - 55      NAd       PIPE    50 - 52      NAd       FILM    61 - 64      NAd       COPOLYMER FLOORING    71 - 73      NAd       DISPERSION HOMOPOLY    84 - 90      NAd       COPOLYMER    89 - 93      NAd       CPVC PIPE COMPOUND    119      NAd       PVDC           EXTRUDABLE    162      NAd       SILICONES           MOLD. COMP.    581 - 640      38.1 - 39.3       SPECIALTY GR.    891 - 3148     NAd       SILICONE/EPOXY    339 - 343      22.5 - 22.8       STYRENEACRYLIC  108 - 112    3.7 - 4.0       SAN (G-P)  66 - 74    2.5 - 2.8       STYRENE MALEIC ANHYDRIDE           G-P    110 - 115      4.2 - 4.3       HI IMP    130 - 140      4.2 - 4.5       FR    175 - 183      6.7 - 7.0       TP ELASTOMERS           OLEFINIC    70 - 76      2.4       POLYAMIDE    287 - 337      10.4 - 12.3       POLYESTER    200 - 310      8.8 - 13.6       STYRENIC    82 - 237      2.9 - 8.3       UREA MOLDING COMPOUND           BLACK & BROWN    76      3.8       WHITE & IVORY    81      4.0       VINYL ESTER           COR RES    205 - 217      NAd       HEAT & COR RES    230      NAd

KEY: Colored areas indicate pricing activity. An arrow () indicates direction of price change. aTruckload, unless otherwise specified. bUnfilled, natural color, unless otherwise specified. cBased on typical or average density. dNot applicable. eNovolac and anhydride grades for coils, bushings, transformers. fNovolac and anhydride grades for resisitors, capacitors, diodes. gIn quantities of 20,000 lb. h19,800-lb load. jLME 30-day futures contract for lots of 54,564 lb..