Pricing Update - November 2006

After a brief surge upward, prices of polyolefins and PVC have softened again. Falling monomer prices is one reason, as are processors’ year-end inventory reductions. PS is a different story, however, because benzene feedstock prices are soaring—but perhaps not for long. Meanwhile, price increases are hitting other thermoplastics and some thermosets.

 

PE prices down

Polyethylene prices were on the way down by October, following suppliers’ implementation of a 5¢/lb increase in August. As a result, processors recouped 2¢ of that hike in September and the rest by mid-October. Sources at resin purchasing consultant Resin Technology Inc. (RTI), Fort Worth, Texas, noted that further price declines were very probable before the end of October. Meanwhile, the London Metal Exchange (LME) November short-term futures contract for butene LLDPE for blown film was 52.8¢/lb, down from October’s 59.9¢.

Contributing factors: PE demand has remained steady but not strong enough to sustain the recent price hike. Suppliers’ inventories were rising in October. RTI sources said processors are looking to cut their own inventories by year’s end as “holiday production” slows down. One major PE supplier says demand for consumer packaging continues to be good though there has been a slowdown in industrial packaging such as liners and shrink wrap, making for a very competitive market.

Ethylene monomer prices were expected to move downward as the supply tightness of the summer months—due to planned and unplanned outages totaling 18% of domestic capacity—was starting to abate. September monomer contract prices were unchanged from August at 51.5¢/lb. And by October, spot prices dropped to 37¢/lb, and some industry sources expected that lower contract prices would follow.

 

PP prices up a bit

Polypropylene prices moved up in September by an average of 1.7¢/lb as resin suppliers pushed to implement a 4¢ hike pending since Sept. 1. But there were indications of some price softening by mid-October. And the LME’s November short-term futures contract for g-p injection homopolymer slid to 52.8¢/lb (identical to PE) from October’s 57.8¢.

Contributing factors: Propylene monomer contract prices, which rose 4¢/lb in August and 2¢ in September, then turned south. October contract prices looked set to drop 3.5¢ to 5¢/lb. PP resin demand was down a bit in August and September, though resin suppliers indicated some recovery in October. RTI sources indicate that PP processors have been buying cautiously and aim to reduce their inventories by year’s end.

 

PVC prices may erode

Resin producers and buyers expected PVC prices to lose 2¢ in October and 4¢ to 6¢ by the end of the year.

Contributing factors: Demand turned suddenly soft in October as prices of natural gas and ethylene retreated and pipe producers worked off inventories. Demand for small-diameter pipe for water and electrical conduit plummeted on expectations of fewer housing starts. Demand for larger water and sewer pipe is a bit less weak. Windows are holding their own.

 

PS prices volatile

Polystyrene producers were trying for 3¢/lb increases in October, part of a 5¢ hike delayed from Sept. 1, but they were meeting strong resistance from processors, who want PS prices to come down in line with oil prices. Meanwhile, EPS producers announced a 4¢/lb increase for Nov. 1.

Contributing factors: PS demand in September and early October was weak. Dow is shutting two PS trains in Sarnia, Ont., this month and next, taking 300 million lb/yr of capacity out of the market. The unsettling factor is benzene feedstock for styrene monomer. Contract benzene hit $4/gal for October, an all-time high, up from $3.55/gal in September. Cheaper benzene on its way from Asia could bring some relief this month.

 

Other price hikes

BASF, DuPont, and Ticona lifted tabs on various engineering resins between Oct. 15 and Nov. 1: Standard nylons rose 10¢ to 12¢/lb, specialty nylons 12¢ to 15¢/lb. BASF hiked acetals 10¢, DuPont 12¢, and Ticona only 7¢/lb. PBT and PET compounds went up 10¢ for BASF, 12¢ for Ticona, and 15¢ for DuPont. Polyester TPEs went up 12¢ to 15¢. And LCPs rose 15¢ for DuPont and 25¢ for Ticona.

Oct. 15 was also the date for a 15¢ increase on Topas cyclic olefin copolymer (COC) from Topas Advanced Polymers.
And Reichhold raised prices on unsaturated polyesters and vinyl esters by 5¢/lb on Nov. 6. 

 

Market Prices Effective Mid-Oct A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    84 - 90      3.1 - 3.4       HI IMPACT    89 - 125      3.3 - 4.7       X-HI IMPACT    99 - 140      3.7 - 5.3       HI HEAT    89 - 110      3.3 - 3.8       PIPE    89 - 110      3.3 - 4.1       SHEET    94 - 110      3.5 - 4.2       TRANSPARENT    129 - 165      5.1 - 6.4       FITTINGS    89 - 115      3.3 - 4.3       PLATING    99 - 105      3.7 - 3.9       FLAME RET    124 - 140      4.6 - 5.9       STRUCT FM    87 - 97      3.2 - 4.3       10% GLASS    129 - 140      4.8 - 5.6       30% GLASS    124 - 136      4.6 - 6.3       ABS/PC ALLOY    149 - 180      5.5 - 6.8       ABS/PVC ALLOY    134 - 139      5.0 - 5.2       ABS/NYLON ALLOY    194      7.3       ACETAL           HOMOPOL    148 - 165      7.5 - 8.4       20% GLASS    168 - 228      8.5 - 11.5       COPOLYMER    141 - 153      7.1 - 7.7       25% GLASS    168 - 240      8.5 - 12       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    5000 - 6000     385 - 462       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)    88 - 89      4.4 - 4.5       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    140 - 145      NAd       ISOPHTHALIC    165 - 175      NAd       BIS-A    210 - 215      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    87 - 89     2.9      INJECTION    89 - 91     2.9 - 3.0      LID RESIN    91 - 93     3.0 - 3.1      LINER    85 - 90     2.8 - 2.9      CLARITY    83 - 85     2.7 - 2.8      EXTRU COATG    88 - 90     2.9 - 3.0      BLOW MOLD    91 - 93     3.1      LLDPE, BUTENE BASED           G-P MOLDING    74 - 76     2.5      LME 30-DAYj    76 - 78     2.5 - 2.6      FILM    52.8     1.8      ROTOMOLD    78 - 80     2.6      LLDPE, HAO-BASED           G-P MOLDING    79 - 81     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    83 - 85     2.8      BLOW MOLD    79 - 81     2.7      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    82 - 84      2.7       LME 30-DAYj    52.8     1.7      EXTRUSION FIBER    80 - 82      2.6 - 2.7       PROFILES    86 - 88      2.8       RANDOM COPOL               BLOW MOLDING    87 - 89      2.8 - 2.9       FILM    87 - 89      2.8 - 2.9       INJECTION    84 - 86      2.7 - 2.8       IMPACT COPOL               MED IMP    94 - 96      3.0 - 3.1       HI IMP    97 - 99      3.1 - 3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    79 - 85      3.0 - 3.3       HI HEAT    82 - 88      3.1 - 3.3       HIPS    80 - 85      3.0 - 3.3       SUPER HI IMP    90 - 94      3.2 - 3.5       FR    98 - 106      3.7 - 4.0       STRUCT FM (FR)    105 - 108      NA       EPS           UNMODIFIED    85 - 88      NAd       MODIFIED    86 - 90      NAd       POLYSULFONE  569    25       10% GLASS 430 20.6    669      32       30% GLASS 372 20.01    609      20       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    55 - 57      NAd       PIPE    52 - 54      NAd       FILM    63 - 66      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    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    76      3.8       WHITE & IVORY    81      4.0       VINYL ESTER           COR RES    213 - 225      NAd       HEAT & COR RES    238      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..