Your Business Pricing Update - April 2008

PE PRICES RETREAT

Polyethylene prices dropped 3¢/lb in February, erasing a 3¢ increase the month before (which was only half of what suppliers had sought). Resin makers tried again, announcing price hikes of 6¢/lb for March 1. Meanwhile, The London Metal Exchange (LME) North American futures contract for April in blown film butene LLDPE remained flat at 65.7¢/lb.

Contributing factors: Since October, PE resin prices moved up 9¢/lb. But now, slumping exports are compounding the softness in domestic demand. Up to now, the weak U.S. dollar has boosted exports to the point of creating a shortage of shipping containers in Houston. “Whereas it normally took three to five days to get containers returned from ports like Hong Kong, it now takes over two weeks to return them, because these Eastern ports have an overload of product in containers,” explains Mike Burns, global business director for PE at resin purchasing consultant Resin Technology, Inc., Fort Worth, Texas.

PE makers’ inventories have grown to 45 days or more, according to some industry analysts. RTI’s Burns thinks that PE prices are unlikely to drop further if oil prices keep rising.

From October to March, monomer prices rose and then settled lower. In October, ethylene contract prices were 57. 5¢/lb, rose to 63.5¢ in January, and settled back to 59.5¢ in February. Suppliers were pushing for March contract increases of as much as 5¢/lb, but industry analysts doubted that would happen. RTI’s Burns noted that spot ethylene prices dropped from October’s 51¢/lb to 50¢ in March.

 

PP PRICES DOWN

Polypropylene prices dropped 2¢ to 3¢/lb in February, offsetting a 1¢ increase in January. Nonetheless, a PP price hike was announced in late February. Suppliers were seeking 3¢ more for March 1, citing the persistently high costs of feedstocks and energy. The increase is meant to be on top of previously announced hikes. Meanwhile, the April LME North America short-term futures contract for g-p injection grade homopolymer sold at 68.4¢/lb, unchanged from March.

Contributing factors: Lower PP prices followed the February drop in propylene monomer contract prices of 3¢ to 59.5¢/lb. Suppliers were seeking March monomer contract price increases of up to 5¢/lb, but industry analysts expect a 1¢ increase at most. Says Scott Newell, RTI’s director of client services for PP, “Spot propylene is already trading down to 56-57¢/lb. However, there is now a tightening of monomer supply developing, due to planned and unplanned outages and other factors.”

Domestic resin demand remains soft and exports have declined, despite the weak dollar. This is partially due to an actual drop in overseas demand and to the shipping problems noted above. U.S. PP exports in March were estimated at about 300 million lb, down from 407 million lb/month in August and September. Industry sources like RTI’s Newell expect PP prices to remain flat at least through March, with increased likelihood of spot-market discount opportunities.

 

PET PRICES lower—FOR NOW

PET prices dropped 2.5¢ to 3¢/lb by the end of February, but all major suppliers issued hikes of 5¢/lb for April 1.

Contributing factors: Resin prices followed price declines in feedstocks. However, feedstock prices are expected to move up this month. PET suppliers, whose profit margins are negligible at best, aim to strengthen resin prices for the period of seasonal high demand. Says RTI’s PET global business director, Mike Dewsbury, “Supply/demand will tighten for PET in April and May.”

 

OTHER PRICES UP

Prices of engineering resins and thermosets may be moving up again. BASF issued several price increases for March. Its fiber materials group raised nylon 6 tabs 10¢/lb for fibers, film, wire and cable, and compounding. Its engineering materials group hiked nylon 6 and 66 by 15¢/lb and PBT 10¢/lb.

Meanwhile, AOC announced a 7¢/lb increase for unsaturated polyester resins and gel coats for April 7. 

 

Market Prices Effective Mid-Mar A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    90 - 110      3.4 - 4.2       HI IMPACT    95 - 131      3.6 - 5.0       X-HI IMPACT    105 - 145      4.0 - 5.5       HI HEAT    90 - 125      3.4 - 4.7       PIPE    89 - 100      3.7 - 3.8       SHEET    94 - 110      3.5 - 4.2       TRANSPARENT    129 - 200      5.6 - 8.8       FITTINGS    89 - 110      3.5 - 4.3       PLATING    160      6.0       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 - 350      9.0 - 16       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    693 - 1050      44.4 - 67.2       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    171 - 182      7.4 - 7.9       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    150 - 185      7.0 - 7.5       STRUCT FOAM    149 - 181      6.4 - 7.8       20% GLASS    235 - 255      10.1 - 11.0       FR    166 - 197      7.1 - 8.5       CD    135 - 195      5.8 - 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)    75 - 77     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

RESIN GRADEb ¢/LB ¢/CU INc    POLYESTER THERMOSET           G-P ORTHO    142 - 152      NAd       ISOPHTHALIC    170 - 185      NAd       BIS-A    205 - 225      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    75 - 78     2.5 - 2.6      INJECTION    77 - 79     2.6      LID RESIN    79 - 81     2.6      LINER    74 - 76     2.5      CLARITY    73 - 75     2.4 - 2.5      EXTRU COATG    78 - 80     2.6      BLOW MOLD    80 - 81     2.6      LLDPE, BUTENE BASED           G-P MOLDING    72 - 74     2.4      LME 30-DAYj    65      2.2       FILM    77 - 79     2.6      ROTOMOLD    74 - 76     2.4 - 2.5      LLDPE, HAO-BASED           G-P MOLDING    75 - 77     2.5 - 2.6      LID RESIN    85 - 87     2.7 - 2.8      LINER FILM    78 - 80     2.6      HDPE           G-P INJ MOLD    72 - 74     2.4      FILM    81 - 83     2.6      BLOW MOLD    82 - 84     2.6 - 2.7      HMW-HDPE           BLOW MOLDING    79 - 81     2.6      FILM    80 - 82     2.6      PIPE    87 - 89     2.9      UHMW-PE  1.00 - 1.25    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    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    78 - 80     2.5 - 2.6      LME 30-DAYj    68.4      2.3       EXTRUSION FIBER    76 - 78     2.5      PROFILES    81 - 83     2.6      RANDOM COPOL               BLOW MOLDING    82 - 84     2.6 - 2.7      FILM    82 - 84     2.6 - 2.7      INJECTION    81 - 83     2.6      IMPACT COPOL               MED IMP    92 - 94     2.9 - 3.0      HI IMP    94 - 96     3.0 - 3.1      POLYSTYRENE (RAILCAR)           G-P CRYSTAL    88 - 94      3.3 - 3.5       HI HEAT    91 - 97      3.4 - 3.6       HIPS    89 - 94      3.3 - 3.5       SUPER HI IMP    99 - 103      3.7 - 3.9       FR    104 - 110     3.9 - 4.1       STRUCT FM (FR)    105 - 108      NA       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    58 - 60      NAd       PIPE    57      NAd       FILM    63 - 65      NAd       COPOLYMER FLOORING    69 - 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    218 - 235      NAd       HEAT & COR RES    243 - 248      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..