Temporary Lull in Price Hikes

For the most part, commodity resin prices were stable last month, though rising feedstock prices, some upticks in demand, and revival of exports indicate pressure building for higher prices.

 

PE PRICES FLAT FOR NOW

Polyethylene prices were relatively stable though March, as suppliers pushed back their 5¢/lb price hikes from March to April. Meanwhile, the London Metal Exchange (LME) North American short-term futures contract in blown-film butene LLDPE for May was 38¢/lb, up slightly from April’s 37¢.

Contributing factors: Domestic demand is still down, but exports appear to be coming back to life. Also, ethylene monomer spot prices moved up to 23.25¢/lb early in April, having dropped to as low as 21.5¢ in mid- to late March. If spot monomer prices move as high as 27¢/lb, a PE price hike could result, says Mike Burns, global business director for PE at Resin Technology Inc., resin purchasing consultants, in Fort Worth, Texas.

 

PP PRICES TO MOVE UP?

Polypropylene prices were flat through March, and suppliers’ planned increases of 5¢ to 6¢/lb fell by the wayside. However, new hikes of 2¢ to 3¢ were issued for April. LME’s North American short-term futures contract in g-p injection-grade homopolymer was up to 37.2¢ for May from April’s 36.1¢/lb. Secondary market prices for PP resin dropped 2¢ to 4¢ and even more for wide-spec.

Contributing factors: April monomer spot prices appeared to be on the rebound, although April contract prices could remain flat or even soften a bit.

According to Scott Newell, RTI’s director of client services for PP, resin suppliers have been able to export a lot of their excess material, which has tightened up domestic supplies. “Polypropylene supply has tightened in the Far East and Europe and their prices have been going up. As a result, China and some European countries have been buying from North America.” Resin exports have also tightened domestic monomer supply. Demand for PP in the first quarter appears to have dropped at least 2-3%.

 

PVC APPEARS FLAT

PVC producers have gotten 2.5¢ to 3¢ out of 8¢/lb in price increases they have posted so far this spring. The announced 3¢ increase for April 1 does not appear to be in effect. OxyChem in mid-April told customers that April prices would be flat, but PVC in May would go up a whopping 5¢/lb. Flat ethylene monomer prices appears to be keeping PVC prices level. Window and siding demand in April picked up slightly.

 

PS PRODUCERS WANT 4¢ MORE

PS resin producers say they got their 3¢/lb increase in March, but in mid-April it was too soon to say whether they would get a 2¢ deferred increase as well. Americas Styrenics and Ineos both announced an additional 4¢ hike for Apr. 15, but Total made that date unlikely by posting its 4¢ hike for May 1.

Contributing factors: Rising benzene prices are behind the PS increases. Contract benzene for April was $1.69/gal, up from $1.29 in March. Every 10¢ increase in benzene translates into 1¢ higher cost for styrene monomer. Export demand for styrene is picking up in China. PS demand in packaging also grew slightly (5% to 10%) in April, though total PS sales through February were down 16.3%.

 

PET PRICES UP?

PET prices moved up 2¢ to 3¢/lb in March, a partial implementation of March increases of 5¢ to 7¢. This followed implementation of a 4¢ hike in February.

Contributing factors: Suppliers’ partial success in raising prices was spurred by hikes in paraxylene and ethylene glycol feedstocks and by improved resin demand—however slight—which is typical in the second quarter. Mike Dewsbury, global business director for RTI, says demand is up 2% to 3%, a far cry from the 6% to 7% gains of the last couple of years and the consistent annual double-digit demand growth of just a few years back. If StarPet starts its new 800- to 900-million-lb PET production line in June, rather than later in the year, overcapacity will put downward pressure on prices. In the fourth quarter, Indorama Polymers is scheduled to start up a 1-billion-lb plant in Decatur, Ala.

 

DOW HIKES POLYCARBONATE

Dow Chemical Co. said all polycarbonate resins, compounds, and blends would go up 7¢/lb on May 1. Dow sought counteract to six months of declining prices for PC and a 60% rise in benzene and 35% increase in propylene raw materials since January. 

 

Market Prices Effective Mid-Apr 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)    73 - 77     3.7 - 3.8      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    38      1.4       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    46 - 48      1.5 - 1.6       LME 30-DAYj    37.2      1.2       EXTRUSION FIBER    44 - 46      1.4 - 1.5       PROFILES    52 - 54      1.7       RANDOM COPOL               BLOW MOLDING    50 - 52      1.6 - 1.7       FILM    50 - 52      1.6 - 1.7       INJECTION    49 - 51      1.6       IMPACT COPOL               MED IMP    60 - 62      1.9 - 2.0       HI IMP    62 - 64      2.0 - 2.1       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    56 - 62      2.1 - 2.3       HI HEAT    59 - 64      2.2 - 2.4       HIPS    65 - 71      2.4 - 2.7       SUPER HI IMP    72 - 82      2.7 - 3.1       FR    75 - 80      2.8 - 3.0       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    46 - 48      NAd       PIPE    45      NAd       FILM    51      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..