Higher Prices Return

In the teeth of a deepening recession, commodity resin suppliers managed to raise prices in the first two months of the year, spurred by a sudden uptick in monomer tabs.

 

YES, PE PRICES ARE UP

Polyethylene suppliers succeeded in hiking prices 7¢/lb in January and February, giving them full implementation of their first increase of the year. This came after prices crashed between August and December by a total of 48¢/lb. PE plant capacity utilization rates have reportedly dropped below 70%. That didn’t stop resin makers from announcing a second 5¢ hike for Feb. 1, but it has been delayed. Meanwhile, the London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE for March dropped to 34¢/lb from February’s 39¢.

Contributing Factors: The good news is that PE processors reportedly have been able to raise their prices of finished goods by about 10%, passing on the 7¢ to 8¢ resin price hikes they have incurred. PE resin tabs were driven by ethylene monomer price hikes. Contract ethylene prices in January moved up to 31.5¢/lb from December’s 28¢. According to Mike Burns, global business director for PE at resin purchasing consultant Resin Technology, Inc. (RTI) in Fort Worth, Texas, that little uptick in monomer prices squeezed PE resin margins enough to drive up prices, supported by a bout of resin pre-buying in January, ahead of announced price hikes. Ethylene monomer contract prices are expected to be flat in February.

 

PP PRICES ROSE, TOO

Polypropylene prices moved up 2¢/lb in January, representing partial implementation of the year’s first hike of 6¢/lb. Price hikes of 6¢ to 8¢, effective Feb. 1, were also expected to be implemented by this month. Meanwhile the LME’S North American short-term futures contract in general-purpose injection grade homopolymer in March dropped to 29.9¢/lb from February’s 39.2¢/lb.

Contributing factors: January propylene monomer contract prices settled 2¢ higher at 22¢/lb and increases of 6¢ to 7¢ were on the table for February. Scott Newell, RTI’s director of client services for PP, says there was monomer oversupply in the fourth quarter of 2008 and prices were “overcorrected” downward. But then, he says, “Propylene supplies were aimed toward the propane stream for fuel. This, along with crackers being shut down and refineries running at lower rates, served to tighten up propylene supply.”

PP resin demand is still very low, but demand bumped upward in the first couple of months of the new year, following a strong de-stocking effort in fourth quarter. “People are back buying resin because their inventories had been cleaned out,” says Newell, although he expects PP demand in the first half of this year to be lower than last year’s first half. Industry estimates peg plant utilization at 70% or lower.

 

PVC: EXPECT AN INCREASE

PVC resin producers say they were invoicing PVC at prices 5¢ higher last month. Processors, however, say the increase would be only 2¢ to 3¢ in February. Shintech’s deferred 2¢ hike for March 1 seems to be forgotten.

Contributing factors: The price increase was said to be justified by rising ethylene monomer contract prices, which were 5¢ higher (at 31.5¢/lb) in January than in November. Ethylene in February appeared flat.

Demand for rigid PVC remains very weak, though processors said last month it was better than in the fourth quarter of 2008. Pipe processors appear to be working only three- to four-day weeks, while other PVC processors say they’re working five days.

 

PS PRODUCERS WANT A HIKE

Americas Styrenics in late January sent customers a letter announcing a 5¢ increase for Feb. 15, soon seconded by Ineos Nova and Total. Processors protested the two-week notice, and Total deferred its hike to March 1.

Contributing factors: PS producers had lowered prices 8¢ to 9¢/lb in January, when benzene feedstock prices fell. In mid-February, benzene prices bounced back—up 5¢ from January. Contract benzene for February was $1.35/gal; spot benzene was $1.40 to $1.42. PS demand continues to be very weak, especially for refrigeration and CD boxes, despite a slight seasonal uptick in packaging. 

 

Market Prices Effective Mid-Feb 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    166 - 182      7.9       20% GLASS    172 - 190      8.2       30% GLASS    173 - 217      9.3       EXTRUSION    140 - 180      7.7       BLOW MOLD    145 - 185      7.5       STRUCT FOAM    144 - 181      7.8       20% GLASS    230 - 255      11.0       FR    161 - 197      8.5       CD    130 - 195      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)    67 - 71      3.4 - 3.6       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       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    50 - 52      1.7       INJECTION    52 - 54      1.7 - 1.8       LID RESIN    55 - 57      1.8 - 1.9       LINER    52 - 54      1.7 - 1.8       CLARITY    48 - 50      1.6 - 1.7       EXTRU COATG    53 - 55      1.8       BLOW MOLD    55 - 57      1.8 - 1.9       LLDPE, BUTENE BASED           G-P MOLDING    55 - 57      1.8 - 1.9       LME 30-DAYj    34      1.2       FILM    52 - 54     1.7 - 1.8      ROTOMOLD    49 - 51      1.6 - 1.7       LLDPE, HAO-BASED           G-P MOLDING    50 - 52      1.7       LID RESIN    60 - 62      1.9       LINER FILM    53 - 55      1.8       HDPE           G-P INJ MOLD    50 - 52      1.7       FILM    57 - 59      1.9       BLOW MOLD    58 - 60      1.9 - 2.0       HMW-HDPE           BLOW MOLDING    54 - 56      1.8       FILM    55 - 57      1.9       PIPE    62 - 64      2.0 - 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    40 - 42      1.3 - 1.4       LME 30-DAYj    29.9     1.0      EXTRUSION FIBER    38 - 40      1.3       PROFILES    46 - 48      1.5 - 1.6       RANDOM COPOL               BLOW MOLDING    44 - 46      1.4 - 1.5       FILM    44 - 46      1.4 - 1.5       INJECTION    43 - 45      1.4       IMPACT COPOL               MED IMP    54 - 56      1.7 - 1.8       HI IMP    56 - 58      1.8 - 1.9       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    53 - 59      2.0 - 2.2       HI HEAT    56 - 61      2.1 - 2.3       HIPS    62 - 68      2.3 - 2.6       SUPER HI IMP    69 - 79      2.4 - 3.0       FR    75 - 80      2.8 - 3.0       STRUCT FM (FR)    63 - 65      2.4       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    44 - 46      NAd       PIPE    43      NAd       FILM    49      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..