Feedstocks Drive Up Prices

Prices of all sorts of commodity and engineering thermoplastics and thermosets are rising by leaps and bounds, reacting to equally strong increases in feedstock costs.

 

PE PRICES UP SHARPLY

PE prices moved up 3¢/lb in May, after a 3¢ increase in April. A 5¢ hike slated for June was working its way into the market, and a 7¢ increase was announced for July 1. Meanwhile, the London Metal Exchange (LME) North American short-term futures contract for July in blown film butene LLDPE was 73¢/lb, a big jump from June’s 68.5¢/lb.

Contributing factors: It’s likely that the June 5¢ hike will be fully implemented, according to Mike Burns, global business director for PE at resin purchasing consultant Resin Technology, Inc. (RTI), Fort Worth, Texas. Continued increases in feedstock costs and low resin inventories are supporting factors. April-May contracts for ethylene monomer moved up a total of 4¢/lb, and there were bids for at least a 5¢ increase in June.

Domestic PE demand remains lackluster, but HDPE supply is still extremely tight. According to Burns, one factor was Nova Chemicals’ unexpected delay in starting up a new plant after shuttering an older one. Export demand is down from last year but still above historical levels, owing partly to the weak dollar. A PE plant explosion in China has renewed export opportunities here.

 

BIG PP HIKE PENDING

Polypropylene prices moved up 4¢/lb by June 1, although suppliers had posted a 5¢ hike. New hikes were announced in May for June 1, which started out at 5¢/lb but ended up at 8¢/lb. The July LME North American short-term futures contract for g-p injection-grade homopolymer sold for 78.9¢/lb, up from June’s 73.9¢.

Contributing factors: The resin hikes are linked directly to soaring feedstock prices. Propylene monomer contracts in May moved up 4¢ to 69¢/lb, and June contracts were up 6¢ to a historical peak of 75¢/lb. Cindy Bryan, director of market research at RTI, predicts that PP suppliers will probably get 6¢/lb out of their 8¢ June hikes.

Domestic PP demand is still down and U.S. PP exports to most parts of the world have dropped significantly. Says RTI’s Bryan, “Propylene monomer prices are too high, making PP exports cost-prohibitive, and there is competition with exports from Europe and the Middle East.” Meanwhile, PP suppliers have curtailed production, reducing their inventories to about 36 to 38 days, vs. the usual 40-45 days.

Resin supplies are expected to tighten over the next two months, as both Formosa Plastics and LyondellBasell have suffered mechanical breakdowns and utility supply distruptions. Formosa declared force majeure on all of its PP products, which was estimated to result in a 15% reduction of its PP shipments in at least June and July. LyondellBasell did not declare force majeure, but said that severe production problems at both its Bayport, Texas, and Lake Charles, La., PP plants, resulted in its having to fill resin orders from inventory. The company has suspended spot and other non-contract sales.

 

PET RISING

PET prices were up as much as 4¢/lb in May as suppliers sought to implement a 4¢ increase after pushing through the April 5¢ hike. Meanwhile, a 3¢/lb increase for June 1 and 5¢ for July 1 were also in the works.

Contributing factors: The increases are driven by rising prices of feedstocks. While ethylene glycol prices leveled out after having risen significantly in the first quarter, prices of the more critical paraxylene component keep going up. From December through May, paraxylene prices rose 10¢/lb. Industry sources project further price increases because paraxylene follows crude oil prices, and its supply is tight. Meanwhile, PET resin supply is loose due to lackluster demand and new capacity that came on stream in the last year.

 

PVC PRICES UNSETTLED

In mid June, the 4¢ increase supported by all resin producers for May 1 still hadn’t settled. Buyers and sellers alike were awaiting the CDI price index to come out later in June, since Many PVC contract prices are pegged to it. Resin producers say the 4¢ is solid for May shipments. Processors, however, want 2¢ in May and 2¢ in June. Georgia Gulf, Formosa, and OxyChem announced a 4¢ hike for July 1. Shintech is expected to go along.

Contributing factors: Feedstocks are soaring. Ethylene monomer, which hadn’t settled for May at press time, may rise over 5¢/lb.

 

PS INCREASES SOUGHT

PS market prices were expected to rise 4¢ for GP and high-heat grades and 6¢ for HIPS as of June 1. On top of that, Ineos and Total announced a 5¢ increase on all PS grades for June 15, while America’s Styrenics posted a 3¢ hike on GP and 4¢ on HIPS for July 1.

Contributing factors: Demand for PS is still weak. But PS is made from benzene and ethylene. Benzene settled at $4.31 for May, up from $3.87 in April. Ethylene prices are on the upswing, too.

 

LOTS MORE INCREASES

DuPont posted a 20¢/lb increase for all standard nylon resins and even bigger hikes for specialty resins, effective July 1. This comes on top of a 12¢ increase May 1. DuPont also hiked acetals 10¢/lb and polyesters 15¢/lb on July 1.

Ticona announced price increases and a transportation surcharge for June 16: Acetal, PBT, PET, and copolyester TPE are up 10¢. Celstran long-fiber products are up 7¢, and LCPs gained 35¢ to 45¢/lb. GUR UHMW-PE rose 20%.

Solutia hiked nylon 66 10% July 1.

BASF hiked styrenic copolymers 6¢/lb on July 1. This includes ABS, SAN, ASA, MABS, and nylon/ABS alloys. Meanwhile, Styrolux and Styroclean SBCs were up 6¢ on June 16.

Huntsman raised epoxies 8% July 1.

AOC hiked unsaturated polyester and vinyl ester resins by 10¢/lb on June 30 and tacked on a 4¢/lb surcharge for products in steel drums. 

 

Market Prices Effective Mid-June 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    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)    80 - 82      4.0 - 4.1       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    81 - 83      2.7       INJECTION    83 - 85      2.7 - 2.8       LID RESIN    85 - 87      2.8       LINER    80 - 82      2.6 - 2.7       CLARITY    79 - 81      2.6 - 2.7       EXTRU COATG    84 - 86      2.7 - 2.8       BLOW MOLD    86 - 88      2.8       LLDPE, BUTENE BASED           G-P MOLDING    78 - 80      2.6       LME 30-DAYj    83 - 85      2.7 - 2.8       FILM    73      2.4       ROTOMOLD    80 - 82      2.6 - 2.7       LLDPE, HAO-BASED           G-P MOLDING    81 - 83      2.7       LID RESIN    91 - 93      2.9       LINER FILM    84 - 86      2.7 - 2.8       HDPE           G-P INJ MOLD    78 - 79      2.6       FILM    87 - 89      2.7       BLOW MOLD    88 - 91      2.7 - 2.8       HMW-HDPE           BLOW MOLDING    85 - 87      2.7       FILM    86 - 88      2.7       PIPE    93 - 95      2.8       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    86 - 88      2.7       LME 30-DAYj    73.9      2.5       EXTRUSION FIBER    84 - 86      2.6 - 2.7       PROFILES    89 - 91      2.7 - 2.8       RANDOM COPOL               BLOW MOLDING    90 - 92      2.8       FILM    90 - 92      2.8       INJECTION    89 - 91      2.7 - 2.8       IMPACT COPOL               MED IMP    100 - 102      3.1       HI IMP    102 - 104      3.1       POLYSTYRENE (RAILCAR)           G-P CRYSTAL    95 - 101      3.6 - 3.8       HI HEAT    98 - 104      3.7 - 3.9       HIPS    98 - 103      3.7 - 3.9       SUPER HI IMP    107 - 112      4.0 - 4.2       FR    113 - 119      4.2 - 4.5       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 - 70      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..