PP & PS Prices May Rise

Polypropylene and polystyrene prices were moving upward in the last month, though polyethylene was relatively flat and PVC was still soft. Demand is said to be steady, but not stellar. “Generally, processors are buying as needed, and are likely to be able to do that through this month, particularly in the case of polyethylene. Although production is stable, there has been no strong order placement,” says Cindy Bryan, director of market research at resin purchasing consultant Resins Technology Inc. (RTI), Fort Worth, Texas.

There are also indications of resin inventory build-up—material that was slated for export to Asia, according to Bryan. While polyolefin suppliers lowered plant operating rates last fall to slow burgeoning inventory accumulations, this “orphaned” export material is likely to be redirected to the domestic market, probably at more attractive pricing.

 

PE prices stable for now

Polyethylene prices remained flat last month, and suppliers pushed back their 6¢ to 7¢/lb increases from January to this month. Meanwhile, the London Metal Exchange (LME) short-term futures contract for February in g-p blown film butene LLDPE sold at 50.3¢/lb, down from January’s 52.2¢.

Contributing factors: Demand for PE remains steady, though undramatic, but there has been a downward push from ethylene monomer pricing. December monomer contracts dropped 3¢ to 41.5¢/lb. Although there are some January contract price nominations for increases of 2¢ to 3¢, spot ethylene prices have dropped to 32¢/lb, and even lower bids have been posted, according to RTI’s Bryan.

 

PP prices up

Polypropylene prices in January moved up 2¢ to 3¢/lb, a partial implementation of 5¢ hikes slated for January. At press time, Basell issued a price hike of 5¢/lb for Feb. 1, and two other suppliers were rumored to be doing the same. LME’s February futures contract for g-p injection-grade homopolymer sold at 50.3¢/lb, down from January’s 53.4¢.

Contributing factors: Overall demand in most markets is said to be good, with the exception of fibers. Suppliers concede that the recent demand surge was partly due to an inventory correction, as processors had been working off inventories through the latter part of last year. Resin plant utilization rates were scaled back to around 85% in November, and are still below 90%. Supplier inventories are reportedly lower than before.

Propylene monomer prices are once again making themselves felt, as January contract nominations were up 2.25¢/lb to 42.75¢. Monomer supply has been tight and is likely to remain so for a couple of months, since at least one major refinery is down for maintenance this month.

 

PVC tabs slip again

PVC resin prices were weaker in December than anticipated, dropping 2.5¢ to 3¢ instead of the expected 2¢. In mid-January, PVC appeared to be down another penny.

Contributing factors: PVC producers’ operating rates in December were the lowest in five years—67% according to the American Plastics Council’s preliminary numbers. Processors say orders are way down for PVC windows, siding, and other building products. The bright spots are solid demand for white municipal pipe and foamed trim board, a new wood-replacement market.

 

PS rises 3¢

Polystyrene resin producers all announced a 3¢/lb increase for Jan. 1, which appeared to be taking hold despite processors’ resistance. For resin makers, it recoups 3¢ lost in December. They then announced hikes of 3¢ or 4¢/lb for Jan. 15, but industry observers are skeptical about their chances of success. Meanwhile, EPS makers are expected to push through the 4¢ hike announced in mid-January.

Contributing factors: When the Jan. 1 PS price increase was announced in December, contract benzene prices were down to $3.32/gal. (Benzene is a key feedstock for styrene monomer.) Benzene contracts for January were up again to $3.74, but resin demand is still slow, especially for HIPS in durable goods, after a very weak November and December. EPS demand, however, is good.

 

Dow hikes ABS, SAN

Blaming benzene prices and their carryover effect on styrene monomer, Dow Chemical raised prices of ABS and SAN by 7¢/lb on Feb. 1. 

 

Market Prices Effective Mid-Jan 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 - 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    100 - 130      3.9 - 5.1       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    46 - 52      1.5 - 1.7       FILM EXTRU    42 - 49      1.4 - 1.6       EVOH  315    13.4       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    156 - 167      19.6 - 21       30% GLASS, FR    185 - 207      11.9       STRUCT FOAM    159 - 165      NAd       PET           BOTTLE (RAILCAR)    78 - 80      3.9 - 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    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    79 - 81      2.6 - 2.7       INJECTION    80 - 82      2.7       LID RESIN    82 - 84      2.7 - 2.8       LINER    76 - 78      2.5 - 2.6       CLARITY    75 - 77      2.5 - 2.6       EXTRU COATG    79 - 81      2.6 - 2.7       BLOW MOLD    82 - 84      2.7 - 2.8       LLDPE, BUTENE BASED           G-P MOLDING    65 - 67      2.2 - 2.3       LME 30-DAYj    50.3     1.7      FILM    67 - 69      2.3 - 2.4       ROTOMOLD    69 - 71      2.3 - 2.4       LLDPE, HAO-BASED           G-P MOLDING    70 - 72      2.4       LID RESIN    80 - 82      2.7       LINER FILM    74 - 76      2.5 - 2.6       HDPE           G-P INJ MOLD    67 - 69      2.4       FILM    74 - 76      2.5 - 2.6       BLOW MOLD    70 - 72      2.4 - 2.5       HMW-HDPE           BLOW MOLDING    74 - 76      2.5 - 2.6       FILM    73 - 75      2.5       PIPE    81 - 83      2.7 - 2.8       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    77 - 79      2.6       LME 30-DAYj    50.3     1.6      EXTRUSION FIBER    72 - 74      2.4       PROFILES    81 - 83      2.6 - 2.7       RANDOM COPOL               BLOW MOLDING    81 - 83      2.6 - 2.7       FILM    79 - 81      2.6       INJECTION    78 - 80      2.6       IMPACT COPOL               MED IMP    90 - 92      3.0       HI IMP    93 - 95      3.1       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 - 622    25 - 28       10% GLASS 430 20.6    749 - 799      36 - 39       30% GLASS 372 20.01    659 - 699      32 - 34       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    47 - 49     NAd       PIPE    46     NAd       FILM    55 - 58     NAd       COPOLYMER FLOORING    68 - 70      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)  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    218 - 230      NAd       HEAT & COR RES    243      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..