Moving On Up

Prices of polyolefins were moving up last month and more increases were on the way. Rising feedstock costs and a generally robust export market are the underlying causes. PET prices also headed upward, as did styrenics, PVC, nylon, PC, thermoset polyesters, and urethane isocyanates.

 

PE prices on the upswing

Polyethylene prices rose last month as suppliers pushed through increases of 4¢/lb for LDPE, HDPE, and butene LLDPE, and 7¢/lb for hexene and octene LLDPE. Meanwhile, a new 5¢ across-the-board hike was brewing for June 1. The London Metal Exchange (LME) short-term futures contract for June in blown film butene LLDPE sold at 54¢/lb, up from May’s 53.1¢.

Contributing factors: Strong exports, higher monomer prices, and tighter supplier inventories are fueling the increases. Ethylene contract prices were expected to settle at 42.5¢/lb for April—2¢/lb over March contracts, which rose 1.5¢. Domestic PE demand rose modestly from March to May, following a slump in January and February, which left total sales up 2% for the year so far. But exports to Europe, Latin America, and especially Asia were very strong. Exports to Asia are up an estimated 20% since October. The U.S. is the lowest-cost PE producer, with resin prices nearly 10¢/lb lower than in China, for example. The 4¢/7¢ increases would significantly close that gap, notes Mike Burns, managing partner at resin-purchasing consultant Resin Technology, Inc. (RTI) in Fort Worth, Texas.

 

PP prices rising

Polypropylene prices moved up 4¢/lb between April and May. That fell between the original 3¢ and the revised 5¢ hike that suppliers were asking for. Meanwhile, LME’s June futures contract for g-p injection-grade homopolymer sold at 58.1¢/lb, just below May’s 58.4¢.

Contributing factors: Suppliers point to increases in feedstock, transportation, and other energy-related costs. PP prices have closely tracked monomer prices, for which April and May contracts each rose 4¢/lb. “Monomer prices are at all-time high—53.5¢/lb in May,” says RTI managing partner Scott Newell, who attributes this to planned and unplanned refinery shutdowns in the last few months.

Although domestic PP demand was up only about 1% through April, strong export demand has left the market in balance. Supplier inventories are 10 days below normal.

 

PET prices up

PET prices generally rose 2¢/lb in May, reflecting partial implementation of a 3¢ announced increase. Suppliers followed that up with a new 4¢/lb hike for June 1.

Contributing factors: Suppliers say they need to recover several months of increased feedstock costs. They also note strong demand in North and South America. Says one major producer, “This is one of the busiest seasons, and resin plants are running at over 90% utilization.” This source also says the anticipated oversupply from new capacity is not likely to materialize until July or August.

 

PVC’s rise continues

Some resin producers and processors say the 3¢ hike set for April was trimmed back to 2¢—the size of Westlake’s hike. A further 2¢ increase was slated for May, and OxyChem and Georgia Gulf announced another 2¢ for June. Pipe demand was still good in mid-May, but weaker than before. Other construction markets were weak.

 

Polystyrene up 5¢

PS producers say they got a 5¢ hike in May without protest. Producers’ costs rose 6.4¢/lb in May on higher ethylene and benzene prices. Contract benzene went from $3.64/gal to $4.20. In a move to reduce PS overcapacity, Dow is expected to convert a 300- to 400-million-lb PS plant in Midland, Mich., to ABS production later this year.

Other thermoplastics

• Nylon 6: BASF, DSM, and Nycoa hiked nylon 6 resins 8¢/lb between May 1 and June 1.
• Polycarbonate: Dow lifted PC and PC/ABS tabs 12¢/lb June 1.
• Styrenics: Dow hiked ABS, SAN, and ABS 8¢/lb June 1. Lanxess Corp. raised Lustran ABS and SAN, Triax ABS/nylon, and Centrex ASA, AES, and ASA/PC 8¢/lb May 15. BASF hiked Styrolux and Styroclear SBC 4¢/lb May 1.

 

Thermosets & PUR:

Unsaturated polyesters, vinyl esters, and gel coats rose 5¢/lb at all major suppliers between May 25 and June 1. Dow, BASF, and Huntsman hiked MDI 5¢/lb and TDI 10¢/lb on June 1. 

 

Market Prices Effective Mid-May 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    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    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    69 - 71      2.4       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    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..