PP Prices Drop While Others Rise

Domestic resin demand was moderate to slow in the second quarter, but exports were booming and many feedstock prices were rising. The result is more price hikes for most commodity resins, the big exception being polypropylene, which actually dropped in price.

 

PE prices on the way up

Some PE suppliers pushed their 5¢/lb increase from June to July 1, while others tried to implement the hike right away. Some industry sources expect more efforts to raise prices soon. Meanwhile, the London Metal Exchange (LME) short-term futures contract for July in blown film butene LLDPE sold at 55.1¢/lb, up from June’s 54¢.

Contributing factors: Supplier inventories for LDPE and HDPE are said to be very low. Ethylene monomer supply is leaning toward tightness. Ethylene moved up 4¢/lb in April and May. Analysts expect another 1¢ to 2¢ rise in June.

Resin suppliers did not see the usual seasonal surge in PE demand in the second quarter, but they are encouraged by gradual month-to-month improvements. Says one, “Domestic sales from January to May were down 1.3%—250 million lb—from 2006. But PE resin exports were up 31%, or 750 million lb, which puts us ahead by 450 million lb in total sales.”

Says Mike Burns, managing partner at resin-purchasing consultant Resin Technology, Inc. (RTI) in Fort Worth, Texas, “We see further opportunity for LDPE and HDPE exports. So we are telling our customers that PE prices will hold. Despite generally lackluster domestic demand for PE goods, we are suggesting that they buy a little extra resin if they can this month.” Burns notes that any ethylene monomer production disruption or upsurge in ethylene demand from the PVC construction sector could tighten the screws on feedstock supply. He and other industry sources don’t expect any decline in PE prices this summer.

 

PP prices slump

PP contract prices were expected to fall 2¢ to 2.5¢/lb last month after a drop of 5¢ to 6¢/lb in spot resin prices in May. LME’s July futures contract for g-p injection-grade homopolymer sold at 55.4¢, down from June’s 58.1¢/lb.

Contributing factors: PP tabs have followed propylene monomer contract prices, which rose 13¢/lb through May and then dropped 2.5¢ in June. Industry sources say monomer could fall another 2.5¢ to 3¢/lb in July and August. “There is no guarantee that July monomer contracts will drop,” cautions RTI managing partner Scott Newell, “because refineries have not been running well and propylene inventories have dropped. They are vulnerable to any major production disruption.”

While domestic PP demand has been flat or slightly negative, exports soared 240% in January to April over last year. Resin plant utilization rates are 90% to 95%, while inventories are 10 to 15 days below normal.

 

PVC prices on the rise

PVC producers all supported a 2¢ increase for June. Georgia Gulf led a further 2¢ hike for July 1, but it had no followers as of mid-June. Several large PVC compounders also announced increases on rigid and flexible compounds totaling 7¢ to 8¢/lb from March to June.

 

PS hikes cause confusion

Dow split its May increase, allowing processors a choice of swallowing a 5¢ hike for the whole month or just 3¢ until May 15 and 7¢ thereafter. That left some processors paying 2¢/lb more than others at the end of May. Dow and most other suppliers announced a further 3¢ hike for June, while Total posted only a 2¢ increase. The result is some confusion over where prices stand.

Contributing factors: May PS demand was the strongest yet this year. June was slightly lower, but still good. June may have seen the PS price peak for a while. Benzene feedstock contract price is $4/gal, down from $4.20, but spot benzene in mid-June was $3.60 to $3.70/gal.

More price increases

• Ticona raised PET and PBT 12¢ on July 2.
• Rhodia hiked nylon 6 and 66 by 7¢ to 7.5¢/lb.
• Lubrizol’s Estane TPUs cost 14¢/lb more on July 13.
• Thermoset polyesters, vinyl esters, and gel coats rose for a second month in a row. AOC, CCP, Interplastic, and Reichhold hiked tabs 7¢/lb early this month. 

 

Market Prices Effective Mid-June 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    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    147 - 152      NAd       ISOPHTHALIC    175 - 185      NAd       BIS-A    220 - 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    80 - 82      2.6 - 2.7       INJECTION    82 - 84      2.7       LID RESIN    84 - 86      2.7 - 2.8       LINER    79 - 81      2.6 - 2.7       CLARITY    78 - 80      2.5 - 2.6       EXTRU COATG    83 - 85      2.7       BLOW MOLD    85 - 87      2.8       LLDPE, BUTENE BASED           G-P MOLDING    67 - 69      2.3 - 2.4       LME 30-DAYj    54.9     1.9      FILM    54.9      1.9       ROTOMOLD    69 - 71      2.3 - 2.4       LLDPE, HAO-BASED           G-P MOLDING    72 - 74      2.4 - 2.5       LID RESIN    83 - 85      2.7 - 2.8       LINER FILM    76 - 78      2.6       HDPE           G-P INJ MOLD    69 - 71      2.4       FILM    78 - 80      2.6 - 2.7       BLOW MOLD    72 - 74      2.4 - 2.5       HMW-HDPE           BLOW MOLDING    76 - 78      2.6       FILM    77 - 79      2.6       PIPE    84 - 86      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    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    83 - 85      2.6 - 2.7       LME 30-DAYj    58.1     2.0      EXTRUSION FIBER    81 - 83      2.6       PROFILES    87 - 88      2.8       RANDOM COPOL               BLOW MOLDING    85 - 87      2.7 - 2.8       FILM    86 - 88      2.7 - 2.8       INJECTION    88 - 90      2.8 - 2.9       IMPACT COPOL               MED IMP    96 - 98      3.2 - 3.2       HI IMP    98 - 100      3.2 - 3.3       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    84 - 89      3.1 - 3.3       HI HEAT    87 - 93      3.3 - 3.5       HIPS    85 - 90      3.2 - 3.4       SUPER HI IMP    95 - 99      3.6 - 3.7       FR    103 - 111     3.9 - 4.2       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    125 - 145      NAd       80/20 TDI    135 - 145      NAd       PVC RESIN (RAILCAR)           G-P HOMOPOL    50 - 52      NAd       PIPE    49      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               WHITE & IVORY               VINYL ESTER           COR RES    228 - 240      NAd       HEAT & COR RES    253      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..