Prices Hit Scarey Levels

The athletes in Beijing aren’t the only ones taking record leaps this summer. PVC producers asked for a startling 8¢/lb increase; PS prices ticked upward at two-week intervals; PP soared by double digits, as did several engineering resins; and LCPs scored a triple-digit climb. In nearly all cases, the cause was not supply or demand, but underlying costs of feedstocks, energy, transportation, and even packaging.

 

PE PRICES UP SHARPLY

Polyethylene prices moved up 5¢/lb in June, bringing to 11¢ the total increases implemented since January. Last month, suppliers were also intent on getting a 7¢ hike dated July 1 and they posted an 8¢ increase for Aug. 1. The London Metal Exchange (LME) North American short-term futures contract in blown film butene LLDPE also jumped from July’s 73¢ to 79.5¢/lb for August.

Contributing factors: The 7¢ July hike is likely to be implemented in full, as was the June increase, according to Mike Burns, global business director for PE at resin purchasing consultant Resin Technology, Inc. (RTI), Fort Worth, Texas. He notes that June contracts for ethylene monomer rose 5¢ to 70¢/lb. That adds up to 9¢ since January. But bids for July monomer contracts rose another 7¢ to 13¢/lb.

Domestic demand continues to be soft, and industry estimates predict a 2% to 6% decline for the first half of this year. Exports are still taking up much of the slack, but most industry experts look for exports to soften soon.

 

PP ROCKET UPWARD

Polypropylene prices moved up 6¢ to 7¢/lb in June, a partial implementation of that month’s 8¢ hike. For July 1, PP suppliers issued unprecedented price hikes totaling 17¢/lb, 2¢ of which is a surcharge for transportation and utility costs. LME’s August North American short-term futures contract for g-p injection-grade homopolymer soared to 91.2¢ from July’s 78.9¢/lb.

Contributing factors: PP resin tabs have closely tracked rising monomer costs. June propylene contracts moved up 6¢/lb and July contract bids ranged 8¢ to 15¢ higher. “Monomer inventories are low and the market is tight. This will continue until propylene prices are high enough to justify more monomer production,” ventures Scott Newell, director of client services at RTI.

Domestic demand for PP continues to be in a slump, with industry statistics showing a 5% drop through May. While PP export demand started the year above historical highs, it has dropped drastically in the last few months due to the cost of monomer, according to RTI’s Newell. PP plant utilization rates are said to be around 85% or perhaps lower. Suppliers have shuttered older capacity and throttled back production, thereby trimming inventories to 30 to 35 days, from the usual 38 to 40 days.

 

PET PRICES UP

PET prices moved up 8¢ to 10¢/lb by the end of June, reflecting partial implementation of price hikes for April, May, and June totaling 12¢/lb. Meanwhile, suppliers were aiming to implement a 7¢ increase for July 1.

Contributing factors: Feedstocks were up 13¢ between March and April alone, and energy and transportation costs for PET producers rose 1.5¢ to 3¢, according to one leading supplier. Price of paraxylene precursor, at 58.25¢/lb in March, was headed to 71.5¢ for June. Projections for July contracts were around 78¢/lb. Said one supplier, “We are trying to explain to our customers that these are unprecedented times and that this surge in feedstock, energy, and transportation costs is here for the long run.”

 

RECORD PVC HIKE POSTED

All PVC resin producers added 4¢ to previously announced 4¢ hikes for July 1, adding up to a record-high 8¢/lb price increase, at least half of which is expected to stick. Spot prices are already up 8¢. This follows a 4¢ increase in May and June.

Contributing factors: Ethylene monomer contract prices for June still had not settled in mid-July, but producers said there would be an increase of 5¢ to 15¢/lb. PVC demand through May was down 12.7%; pipe resin dropped 20.7%; and consumption in windows was off 6.5%.

 

TWICE-A-MONTH PS HIKES

The three big PS producers, Total, Ineos, and Americas Styrenics, announced staggered price increases of 12¢ to 14¢/lb for crystal and HIPS between mid-June and Aug. 1. Although their schedules varied, all three suppliers ended up raising prices at two-week intervals. What’s more, the spread between crystal widened to an unaccustomed gap of 4¢/lb.

Contributing factors: PS demand is fairly good, especially in packaging. But HIPS supply will stay very tight for at least the next two months because the rubber ingredient is on allocation.

 

OTHER RESIN INCREASES

BASF’s Styrolux and Styroclear SBC resins went up 6¢/lb on July 7 after rising a similar amount in June.

Bayer MaterialScience lifted tabs on PC and PC/ABS grades by around 10¢ to 15¢/lb in mid-June.

DSM raised injection molding and specialty grades of nylon 6 and 66 by 20¢/lb last month, while extrusion grades rose only 12¢.

Lubrizol hiked Estane and other aromatic TPUs by 21¢/lb July 15, but Tecoflex aliphatics went up 15¢.

Ticona’s Vectra A LCPs cost $1.60/lb more on Aug. 1. All other Vectra grades rose $1.15/lb.

Unsaturated polyesters, vinyl esters, and gel coats from Reichhold, CCP, and AOC cost 8¢/lb more this month. AOC added 2¢ and CCP 4¢ more to drum shipments because of the rising cost of steel. 

 

Market Prices Effective Mid-July A      RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    95 - 115      359 - 434       HI IMPACT    100 - 135      378 - 510       X-HI IMPACT    110 - 150      415 - 567       HI HEAT    95 - 130      359 - 491       PIPE    95 - 105      359 - 396       SHEET    99 - 115      374 - 434       TRANSPARENT    134 - 205      506 - 774       FITTINGS    94 - 115      374 - 434       PLATING    134 - 205      506 - 774       FLAME RET    129 - 145      487 - 548       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    730 - 1100      47 - 70       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    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)    84 - 86      4.1 - 4.2       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    154 - 164      NAd       ISOPHTHALIC    183 - 198      NAd       BIS-A    218 - 238      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    86 - 88      2.8       INJECTION    88 - 90      2.8 - 2.9       LID RESIN    90 - 92      2.9       LINER    88 - 87      2.8       CLARITY    84 - 86      2.7 - 2.8       EXTRU COATG    89 - 91      2.8 - 2.9       BLOW MOLD    91 - 93      2.9       LLDPE, BUTENE BASED           G-P MOLDING    83 - 85      2.7 - 2.8       LME 30-DAYj    88 - 91      2.8 - 2.9       FILM    79.3      2.6       ROTOMOLD    85 - 87      2.8       LLDPE, HAO-BASED           G-P MOLDING    86 - 88      2.8       LID RESIN    96 - 98      2.9 - 3.0       LINER FILM    89 - 91      2.8 - 2.9       HDPE           G-P INJ MOLD    83 - 85      2.6 - 2.7       FILM    93 - 95      2.8       BLOW MOLD    93 - 95      2.8       HMW-HDPE           BLOW MOLDING    90 - 92      2.8       FILM    91 - 93      2.8       PIPE    98 - 100      2.9       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    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    92 - 94      2.8       LME 30-DAYj    91.1      2.8       EXTRUSION FIBER    90 - 92      2.7 - 2.8       PROFILES    95 - 97      2.8 - 2.9       RANDOM COPOL               BLOW MOLDING    96 - 98      2.9       FILM    96 - 98      2.9       INJECTION    95 - 97      2.8 - 2.9       IMPACT COPOL               MED IMP    106 - 108      3.2       HI IMP    108 - 110      3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    96 - 102      3.6 - 3.8       HI HEAT    99 - 105      3.7 - 3.9       HIPS    100 - 106      3.7 - 4.0       SUPER HI IMP    106 - 112      4.0 - 4.2       FR    112 - 118      4.2 - 4.4       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    61 - 63      NAd       PIPE      60     NAd       FILM    66 - 68      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    231 - 248      NAd       HEAT & COR RES    256 - 261      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..