Commodity Prices Up Sharply

Recession or no recession, resin makers have taken the gloves off on price increases for many commodity materials. Rising feedstock prices are taking the blame.

 

PE PRICES UP

Polyethylene prices rose 3¢/lb in May and were expected to gain another 3¢/lb in June. The London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE traded at 41¢/lb for July, up from 38¢ for June.

Contributing factors: One factor in rising prices was low inventories for ethylene monomer, as producers throttled down production. Spot monomer prices rose from 21¢/lb in May to 25¢ in June. May contract prices were flat, but June prices were likely to rise. Thus, PE suppliers are likely to push hard for the 3¢ June hike.

Domestic PE demand showed some improvement from May into June. Says Mike Burns, global business director for PE at purchasing consultant Resin Technology Inc. (RTI), Fort Worth, Texas, "We are not talking about robust orders, but better than in the first quarter. However, surging export activity halted in June."

 

PP PRICES RISE

Polypropylene prices moved up 2.5¢ to 3¢/lb in May, and suppliers issued hikes averaging 10¢/lb for June 1. Meanwhile, the LME short-term futures contract in g-p injection-grade homopolymer rose to 40¢/lb for July from 37¢ for June.

Contributing factors: Rising propylene monomer prices ended three to four months of relative stability in the PP market. May monomer contract prices moved up 2.5¢/lb. June contracts were poised to jump 8.5¢ to 40¢/lb. "You can expect PP resin prices to move up at least 8.5¢ by the end of June," says Scott Newell, RTI's director of client services for PP. Newell foresees prices of both monomer and resin moving up a bit in July, based on very tight supplies for both, particularly monomer. Higher PP prices have already curtailed previous export activity, while domestic PP demand is still off by 15%, according to Newell.

 

3¢ MORE FOR PVC

Some PVC buyers saw a 1.5¢ increase in May, which was half of what resin producers were seeking initially. Suppliers then posted a 3¢ hike for June and announced a further 3¢/lb hike for July 1. CDI, however, estimated only 1.5¢ for the June hike.

Contributing factors: Processors and resin producers see an uptick in demand, but they all view it as restocking by large buyers who had exhausted their inventories, not as reflecting real demand.

 

MORE PS HIKES ANNOUNCED

Polystyrene producers tried for 4¢ in May, but appear to have gotten only 2¢, after some suppliers told customers they would defer half the hike to June. PS makers had already posted a 3¢ increase for June 1 but are considered unlikely to get 5¢ total. Resin producers have all announced a further 5¢ increase for July 1.

Contributing factors: Benzene contract prices shot up in June to $2.34/gal from $1.90 in May. Some seasonal uptick was expected for summer gasoline production, but benzene rose higher and faster than expected, leading PS producers to announce the July hikes. PS producers expect benzene to rise again in July.

 

PET GOES UP, TOO

Bottle-grade PET prices moved up 2¢ to 3¢/lb in June, in partial implementation of the May 1 hikes of 5¢ to 6¢. July prices are expected to be flat.

Contributing factors: Resin prices got a push from feedstocks. Paraxylene rose 5.5¢/lb in the second quarter and peaked at 49.5¢ in May. June contract prices were expected to move up to around 50.5¢. Ethylene glycol tabs in June increased to 28.1¢/lb from May's 26.3¢, but no change was expected for July. Says a source at a major PET producer, "We got the 2¢ to 3¢ increase because of the uptick in feedstock prices. Also, we are in the summer 'beverage season,' and we are seeing some increase in demand. We expect prices for feedstocks and resin to be flat."

Last year was the first year that PET showed negative growth in demand—a 3.8% decline from 2007. Until then, PET had grown 6% to 7%/yr. For 2009, industry sources project demand to hold even or decline slightly.

 

NYLON & THERMOSETS UP

After Honeywell Resins and Chemicals announced a 10¢/lb hike in nylon for May 11, Rhodia came out with a 12% increase at the end of May, and DSM raised nylon 6 tabs 10¢ on June 15.

After AOC hiked unsaturated polyesters and gel coats by 5¢ on June 1, CCP and Interplastic followed with 5¢ higher tabs for July. 

 

Market Prices Effective Mid-June A
RESIN GRADEb	¢/LB	¢/CU INc

ABS           MED IMPACT    90 - 110      340 - 412       HI IMPACT    95 - 130      359 - 491       X-HI IMPACT    110 - 150      415 - 567       HI HEAT    90 - 125      340 - 472       PIPE    85 - 95      321 - 359       SHEET    90 - 105      340 - 397       TRANSPARENT    134 - 205      506 - 774       FITTINGS    94 - 115      355 - 434       PLATING    165      623       FLAME RET    120 - 140      453 - 529       STRUCT FM    92 - 102      347 - 385       10% GLASS    134 - 145      506 - 548       30% GLASS    129 - 141      487       ABS/PC ALLOY    154 - 185      532 - 699       ABS/PVC ALLOY    139 - 144      525 - 544       ABS/NYLON ALLOY    199 - 355      752 - 1341       ACETAL           HOMOPOL    151 - 172      7.7 - 8.7       20% GLASS    171 - 235      8.7 - 11.9       COPOLYMER    144 - 160      7.3 - 8.1       25% GLASS    171 - 245      8.7 - 12.4       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    69 - 71      2.3 - 2.4       FILM EXTRU    67 - 69      2.3       EVOH  330    15       FLUORO-POLYMER           CTFE    5000 - 6000      385 - 462       ECTFE    1200 - 1680      90.7 - 120       ETFE    1205 - 1730      80.7 - 115.8       FEP    971 - 1470      74.8 - 113.2       PFA    1550 - 2520      120 - 195       PTFE    500 - 950      33.5 - 63.6       PVDF    750 - 1200      48 - 76.9       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    650 - 750      24.3 - 28       30% GLASS    NAd - NAd      NAd - NAd       40% GLASS    NAd - NAd      NAd - NAd       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    158 - 173      7.9       20% GLASS    164 - 181      8.2       30% GLASS    165 - 207      9.3       EXTRUSION    133 - 171      7.7       BLOW MOLD    138 - 176      7.5       STRUCT FOAM    137 - 172      7.8       20% GLASS    219 - 243      11.0       FR    153 - 188      8.5       CD    124 - 186      8.4       POLYESTER (TP) PBT TYPE           UNFILLED    145 - 150      6.8 - 7.3       HI-IMP    165 - 175      7.8 - 8.3       30% GLASS, FR    195 - 215      9.2 - 10.1       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    76 - 80      3.8 - 3.9       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       POLYESTER THERMOSET           G-P ORTHO    151 - 162      NAd       ISOPHTHALIC    175 - 196      NAd       BIS-A    210 - 235      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    53 - 55      1.7 - 1.8       INJECTION    55 - 57      1.8 - 1.9       LID RESIN    58 - 60      1.9       LINER    55 - 57      1.8 - 1.9       CLARITY    51 - 53      1.7       EXTRU COATG    56 - 58      1.9       BLOW MOLD    58 - 60      1.9 - 2.0       LLDPE, BUTENE BASED           G-P MOLDING    58 - 60      1.9 - 2.0       LME 30-DAYj    41      1.5       FILM    55 - 57      1.8 - 1.9       ROTOMOLD    52 - 54      1.7       LLDPE, HAO-BASED           G-P MOLDING    53 - 55      1.7 - 1.8       LID RESIN    63 - 65      2.0 - 2.1       LINER FILM    56 - 58      1.9       HDPE           G-P INJ MOLD    53 - 55      1.8       FILM    60 - 62      2.0       BLOW MOLD    61 - 63      2.0       HMW-HDPE           BLOW MOLDING    57 - 59      1.9       FILM    58 - 60      1.9 - 2.0       PIPE    65 - 67      2.1       UHMW-PE  1.22 - 1.52    4.1 - 5.1       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    450 - 520      27.0 - 31.2       55% GLASS/MINERAL    345 - 420      22.7 - 27.7       65% GLASS/MINERAL    270 - 315      18.9 - 22.1       POLYPROPYLENE (RAILCAR)           G-P HOMOPOL INJECTION    49 - 51      1.6       LME 30-DAYj    40      1.3       EXTRUSION FIBER    47 - 49      1.5 - 1.6       PROFILES    55 - 57      1.7 - 1.8       RANDOM COPOL               BLOW MOLDING    53 - 55      1.7       FILM    53 - 55      1.7       INJECTION    52 - 54      1.7       IMPACT COPOL               MED IMP    63 - 65      2.0 - 2.1       HI IMP    65 - 67      2.1       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    61 - 67      2.3 - 2.5       HI HEAT    64 - 69      2.4 - 2.6       HIPS    70 - 76      2.6 - 2.8       SUPER HI IMP    77 - 84      2.9 - 3.1       FR    80 - 85      3.0 - 3.2       STRUCT FM (FR)    66 - 68      2.5       EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  650 - 750    29 - 33       10% GLASS 430 20.6    799 - 875      36 - 39       30% GLASS 372 20.01    699 - 775      31 - 35       POLYURETHANE (TP)           ESTER TYPE    185 - 255      8 - 11       ETHER TYPE    245 - 295      10.6 - 13       PU ISOCYANATES           POLYMERIC MDI    125 - 145      NAd       80/20 TDI    135 - 145      NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL    48 - 50      NAd       PIPE    47      NAd       FILM    53      NAd       COPOLYMER FLOORING    71 - 74      NAd       DISPERSION HOMOPOLY    81 - 87      NAd       COPOLYMER    86 - 90      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)  80 - 88    3.0 - 3.3       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    300 - 350      10.9 - 12.7       POLYESTER    200 - 310      8.8 - 13.6       STYRENIC    82 - 237      2.9 - 8.3       UREA MOLDING COMPOUND           BLACK & BROWN               WHITE & IVORY               VINYL ESTER           COR RES    221 - 245      NAd       HEAT & COR RES    246 - 258      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..