Your Business Pricing Update - December 2007

Rising monomer prices and strong export demand helped lift prices of all commodity resins as well as some engineering, thermoset, and foam materials.

 

PE prices up

Polyethylene prices moved up last month as suppliers pushed to implement Nov. 1 increases of 5¢/lb. The total rise in PE resin tabs so far this year is 19-21¢/lb (the higher end for hexene and octene LLDPE). Also on the table: a 6¢/lb hike for Dec. 1 (moved from Nov. 15) and 5¢ for Dec. 15. Meanwhile, the London Metal Exchange (LME) short-term North American futures contract for December in blown film butene LLDPE was 60.8¢, up from November’s 57.3¢/lb.

Contributing factors: Domestic PE demand has been low and exports—this year’s saving grace for domestic PE suppliers—are turning a bit softer. Monomer price is what’s driving up PE tabs. October ethylene contracts rose 5¢, bringing them to 57.5¢/lb, and November contracts were liable to rise 8¢ to 10¢/lb. Planned and unplanned production disruptions plus strong export demand resulted in record low ethylene inventories in the third quarter. Moreover, ethane, the feedstock for ethylene, was selling at a record high of $1.07/gal last month compared with a more typical 60¢/gal.

 

PP prices up, too

Polypropylene prices were moving up at least 7¢/lb last month as suppliers aimed to implement Oct. 1 hikes of 3¢ to 4¢/lb along with the Nov. 1 increase of 6¢/lb. LME’s North American December futures for g-p injection-grade homopolymer sold at 64.6¢/lb, up from November’s 59.3¢.

Contributing factors: Propylene monomer prices are driving the resin moves, as monomer contracts rose 3¢ in October to 56.75¢/lb. November contract bids were up a whopping 7.25¢/lb. Resin suppliers attribute these record monomer increases to higher crude oil prices and reduced monomer supplies caused by third-quarter production outages and shifts to use of lighter feedstocks.

Domestic demand is slow, as processors work off inventories during a seasonal slowdown. Says Lowell Huovinen, v.p. of client services at RTI, “Processors are shutting down some production lines because they simply cannot push through these price increases to their customers.”

According to Huovinen, U.S. PP prices continue to be attractive for export to Europe and Central America, but demand abroad is slowing, particularly in Europe, where plants are recovering from unplanned outages. PP exports to China have also fallen as China buys material from more convenient Pacific Rim sources. If exports do not rebound, monomer and resin prices will have to fall, says Huovinen.

 

PVC makers asking 6¢ more

PVC resin producers were all trying for a 6¢ hike last month on top of a 2¢ increase for October. Processors expect the indexes on which many PVC contracts are based to post a slightly lower increase of 4¢ to 5¢.

Contributing factors: The big cost driver is ethylene feedstock, expected to go up 6¢ to 7¢/lb last month. Ethylene is half the cost of PVC. Domestic PVC demand is weak, but exports are strong because of the weak dollar.

 

PS expected to rise 2¢

Polystyrene resin producers initially asked for a 4¢/lb hike in November, on top of a 3¢ increase in October But Total and Ineos capped the hike with a TVA of 2¢.

Contributing factors: Ethylene feedstock is the driving factor, as noted above for PVC. October PS demand was up 5.9% over September levels, but was still down 4.8% for the year to date and was facing further seasonal slowing.

Other increases

• Bayer MaterialScience raised polycarbonate 9¢/lb on Nov. 15.
• DSM Engineering Plastics hiked PBT 12¢ and copolyester TPEs 15¢/lb on Dec. 1.
• BASF increased ABS, SAN, ASA, and ABS/nylon by 4¢ to 5¢/lb Nov. 1.
• AOC hiked unsaturated polyesters, vinyl esters, gel coats, and additives 4¢/lb on Dec. 3 while Reichhold announced an 8¢ hike for Dec. 17.
• Dow increased prices for urethane polyols by 8¢ to 11¢/lb on Dec. 1, while pure MDI went up 10¢/lb. 

 

Market Prices Effective Mid-Nov A

RESIN GRADEb ¢/LB ¢/CU INc    ABS           MED IMPACT    84 - 95      3.2 - 3.6       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 - 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    1155 - 1680      70.7 - 102.8       FEP    971 - 1470      74.8 - 113.2       PFA    1550 - 2520      120 - 195       PTFE    450 - 900      34.8 - 69.7       PVDF    660 - 1000      49.9 - 75.6       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    145 - 150      6.8 - 7.0       HI-IMP    160 - 165      8.4 - 8.6       30% GLASS, FR    190 - 210      11.2 - 12.5       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    78 - 80      4.0       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    137 - 147      NAd       ISOPHTHALIC    165 - 180      NAd       BIS-A    210 - 220      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    78 - 80      2.6       INJECTION    80 - 82      2.6 - 2.7       LID RESIN    82 - 84      2.7       LINER    77 - 79      2.6       CLARITY    76 - 78      2.5 - 2.6       EXTRU COATG    81 - 82      2.6 - 2.7       BLOW MOLD    83 - 85      2.7 - 5.8       LLDPE, BUTENE BASED           G-P MOLDING    75 - 77      2.5 - 2.6       LME 30-DAYj    60.8      2.1       FILM    77 - 79      2.6       ROTOMOLD    77 - 79      2.6       LLDPE, HAO-BASED           G-P MOLDING    78 - 80      2.4 - 2.5       LID RESIN    88 - 90      2.7 - 2.8       LINER FILM    81 - 83      2.5 - 2.6       HDPE           G-P INJ MOLD    75 - 77      2.5 - 2.6       FILM    84 - 86      2.8       BLOW MOLD    85 - 87      2.8 - 2.9       HMW-HDPE           BLOW MOLDING    82 - 84      2.6 - 2.7       FILM    83 - 85      2.6 - 2.7       PIPE    90 - 92      2.9 - 3.0       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    81 - 83      2.6 - 2.7       LME 30-DAYj    64.6      2.2       EXTRUSION FIBER    79 - 91      2.5 - 2.6       PROFILES    84 - 86      2.7       RANDOM COPOL               BLOW MOLDING    85 - 87      2.7 - 2.8       FILM    85 - 87      2.7 - 2.8       INJECTION    84 - 86      2.7       IMPACT COPOL               MED IMP    95 - 97      3.0 - 3.1       HI IMP    97 - 99      3.1 - 3.2       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    86 - 92      3.2 - 3.4       HI HEAT    89 - 95      3.3 - 3.6       HIPS    87 - 92      3.3 - 3.4       SUPER HI IMP    97 - 101      3.6 - 3.8       FR    102 - 110     3.8 - 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    56 - 58      NAd       PIPE    55      NAd       FILM    61 - 63      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..